| If the present value of an ordinary, 7-year annuity is $6,000 and interest rates are 8.5 percent, whats the present value of the same annuity due? (Round your answer to 2 decimal places.) 2. | If the future value of an ordinary, 6-year annuity is $6,200 and interest rates are 7.5 percent, what is the future value of the same annuity due? (Round your answer to 2 decimal places.) 3. | A loan is offered with monthly payments and a 9.25 percent APR. Whats the loans effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) 4. | Given a 4 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,150, $1,350, $1,350, and $1,650. (Do not round intermediate calculations and round your final answer to 2 decimal places.) 5. | Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, and $1,850. (Do not round intermediate calculations and round your final answer to 2 decimal places.) | 6. | You are looking to buy a car. You can afford $480 in monthly payments for four years. In addition to the loan, you can make a $1,300 down payment. If interest rates are 7.75 percent APR, what price of car can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.) 9. | Payday loans are very short-term loans that charge very high interest rates. You can borrow $220 today and repay $275 in two weeks. What is the compounded annual rate implied by this 25 percent rate charged for only two weeks? (Do not round intermediate calculations and round your final answer to the nearest whole percent.) | 7. | A perpetuity pays $120 per year and interest rates are 7.7 percent. How much would its value change if interest rates increased to 9.2 percent? (Round your answer to 2 decimal places.) 8. | If you start making $160 monthly contributions today and continue them for five years, whats their future value if the compounding rate is 10.25 percent APR? (Do not round intermediate calculations and round your final answer to 2 decimal places.) | | What is the present value of this annuity? (Do not round intermediate calculations and round your final answer to 2 decimal places.) | | | | | | |
