1) Jim makes a deposit of $12,000 in a bank account. The deposit is to earn interest compounded annually at the rate of 6 percent for seven years. How much will Jim have on deposit at the end of seven years?

2) Suppose you deposit $1,250 at the end of each quarter in an account that will earn interest at an annual rate of 10 percent compounded quarterly. How much will you have at the end of four years?

3) Jones can deposit $5,000 at the end of each six-month period for the next 12 years and earn interest at an annual rate of 8 percent, compounded semiannually. What will the value of the investment be after 12 years?

4) An investor is considering an investment that will pay $2,150 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually. How much should he pay today for the investment?

5) An investor can make an investment in a real estate development and receive an expected cash return of $45,000 at the end of six years. Based on a careful study of other investment alternatives, she believes that a 9 percent annual return compounded quarterly is a reasonable return to earn on this investment. How much should she pay for it today?

6) John is considering the purchase of a lot. What is the internal rate of return compounded annually on the investment if John purchases the property for $7,000 and is able to sell it 10 years later for $15,000?

7) The Dallas Development Corporation is considering the purchase of an apartment project for $100,000. They estimate that they will receive $15,000 at the end of each year for the next 10 years. At the end of the 10th year, the apartment project will be worth nothing. If Dallas purchases the project, what will be its internal rate of return, compounded annually?

8) How many years (rounded to the nearest whole number) will it take a deposit placed in an interest-earning account earning

8% a year to triple in value? o

9) A borrower obtains a loan for $125,000 at 11 percent interest for 10 years. What will be the monthly payment on the loan?

10) A fully amortizing mortgage loan is made for $80,000 at 6 percent interest for 25 years. Payments are to be made monthly. What is the outstanding loan balance if the loan is repaid at the end of year 10?

11) A partially amortizing mortgage is made for $60,000 for a term of 10 years. The borrower and lender agree that a balance of $20,000 will remain and be repaid as a lump sum at that time. If the interest rate is 7 percent, what must monthly payments be over the 10-year period?

12) An interest-only mortgage is made for $80,000 at 10 percent interest for 10 years. The lender and borrower agree that monthly payments will be constant and will require no loan amortization. What will the monthly payments be?

13) A fully amortizing mortgage is made for $80,000 for 25 years. Total monthly payments will be $900 per month. What is the interest rate on the loan?

14) A fully amortizing mortgage loan in the amount of $100,000 is made at 12 percent interest for 20 years. Payments are to be monthly. If 3 points are deducted in closing costs, what is the effective interest rate for the loan?

15) A mortgage loan in the amount of $100,000 is made at 12 percent interest for 20 years. Payments are to be monthly. What are the monthly payments if it is a negative amortizing loan and the loan balance will be $150,000 at the end of year 20? o

16) The purchase price of a home is $100,000. A borrower can obtain an 80 percent loan with an 8 percent interest rate and monthly payments. The loan is to be fully amortized over 25 years. Alternatively, he could obtain a 90 percent loan at an 8.5 percent rate with the same loan term. The borrower plans to own the property for the entire loan term. What is the incremental cost of borrowing the additional funds?

17) An investor obtained a fully amortizing mortgage five years ago for $95,000 at 11 percent for 30 years. Mortgage rates have dropped, so that a fully amortizing 25-year loan can be obtained at 10 percent. There is no prepayment penalty on the mortgage balance of the original loan, but three points will be charged on the new loan and other closing costs will be $2,000. All payments are monthly. What rate is earned on the cost to refinance?

18) Secondary Mortgage Purchasing Company (SMPC) wants to buy your mortgage. The original balance of your mortgage was $140,000 and was obtained five years ago with monthly payments at 10 percent interest. The loan was to be fully amortized over 30 years. What should SMPC pay if it wants an 11 percent return?

19) An investor has $60,000 to invest in a $280,000 property. He can obtain a $180,000 loan at 9 percent for 20 years and a second mortgage for $40,000 at 13 percent for 20 years. The loan requires monthly payments and is fully amortizing. What is the effective cost of the two loans?

20) A builder is offering $100,000 loans for his properties at 9 percent for 25 years. Monthly payments are based on current market rates of 9.5 percent and are to be fully amortized over 25 years. The property would normally sell for $110,000 without any special financing. At what price should the builder sell the properties to earn, in effect, the market rate of interest on the loan?

somebody please help me solve these questions with steps . Please answer all of them with calculations. Thank you