1. Solve the following unknown variable.

(a) n = 300 i = 0.015 PMT = $400 F V = ?

(b) P V due = $20, 000 i = 0.0075 PMT = $300 n = ?

(c) n = 50 i = 0.0125 F V due = $10, 000 PMT = ?

2. Describe the following in your own words.

(a) The difference between the n value in the regular compound interest formulas (ex. F V = P V (1 + i) n) and the annuity formulas (ex. . F V = PMT h (1+i) n1 i /i

(b) The difference between a general and ordinary annuity. Specifically, give an example of when you need to calculate the i2 value.

3. Instead of your daily trip to the coffee shop, you will instead deposit $120 every month into your savings account earning 1.2% compounded monthly.

(a) How much will you have saved if you start saving one month from today and continue for 5 years?

(b) How much interest will you gain in total over the 5 years? (Hint: How much did you deposit in total?

4. You decide to finance a car that costs $15,000 and has a financing rate of 3% compounded annually. How long will this financing loan be if the monthly payments are $325 and you start payments one month from today?

5. A company is going to set up a perpetuity to withdraw $150 for miscellaneous expenses each quarter. If money can earn 1% compounded quarterly, how much do you need to have in the account if payments will be withdrawn starting today?

6. Your friend has an extra $1000 that they will deposit into their account today. That deposit will gain 4% compounded semi-annually for 10 years. Exactly 10 years after the deposit, they will be deposit $500 every 6 months for another 10 years (20 deposits) and will still gain 4% semi-annually. How much will be in the account 20 years after the initial deposit?

7. An acquaintance has asked you about retirement. They want to know what their monthly payments need to be for the next 25 years if they wish to get $1000 every month starting one month after the 25 years. They would like to receive this every month for 25 years. If it is estimated that money in the account will get 1% compounded monthly, how much will the monthly deposits need to be? (Hint: Calculate how much you will need by the time retirement comes, then calculate the payment based on this value. Each annuity will be marked out of 3.)

please solve all the above questions step by step and make sure that all will be correct.

Thanku