1.) Time to reach a financial goal

You have $44,524.78 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $270,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.

2.) Future value: annuity versus annuity due

a.)What's the future value of a 11%, 5-year ordinary annuity that pays $800 each year? Round your answer to the nearest cent.

$

b.) If this was an annuity due, what would its future value be? Round your answer to the nearest cent.

$

3.) Present and future values of a cash flow stream

An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $600 at the end of Year 6.

a.) If other investments of equal risk earn 8% annually, what is its present value? Round your answer to the nearest cent.

b.) If other investments of equal risk earn 8% annually, what is its future value? Round your answer to the nearest cent.

4.) Loan amortization and EAR

You want to buy a car, and a local bank will lend you $30,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 7% with interest paid monthly.

What will be the monthly loan payment? Round your answer to the nearest cent.

$

What will be the loan's EAR? Round your answer to two decimal places.

%

5.) Growth rates

Shalit Corporation's 2011 sales were $6 million. Its 2006 sales were $3 million.

At what rate have sales been growing? Round your answer to two decimal places.

%

6.) Effective rate of interest

Find the interest rates earned on each of the following. Round each answer to two decimal places.

You borrow $650 and promise to pay back $715 at the end of 1 year.

%

You lend $650 and the borrower promises to pay you $715 at the end of 1 year.

%

You borrow $70,000 and promise to pay back $648,587 at the end of 15 years.

%

You borrow $11,000 and promise to make payments of $3,359.50 at the end of each year for 5 years.

%