1. You invest $1798 at the beginning of every year and your friend invests $1798 at the end of every year. If you both earn an annual rate of return of 6.4%, how much will each of you have in your account after 38 years? (Show your answer to the nearest cent. Round your answer to the nearest 2 decimal places. DO NOT round until after all calculations have been completed and you have reached your final answer. If your answer ends in a zero, only include 1 decimal place and omit the zero. If the answer ends in two zeros after rounding, do not use any decimal places as ANGEL does not recognize the ".00" endings and will remove points from your score.)

Amount in friend's account =

Amount in your account=

2. You currently have $4488 in a retirement savings account that earns an annual return of 9%. You want to retire in 40 years with $1,000,000. How much more do you need to save at the end of every year to reach your retirement goal?

Amount of annual savings needed =

3. You currently owe $4458 of your credit card that charges an annual interest rate of 21.2%. You make $104 of new charges every month and make a payment of $284 every month. What will your credit card balance be in three months?

Credit card balance at the end of three months =

4. You would like to retire in 18 years. The expected rate of inflation is 2% per year. You currently have a standard of living that requires $7775 of monthly expenses. Assuming you want to maintain the same standard of living in retirement, what are your monthly expenses expected to be the first year of retirement? (Show your answer to the nearest cent. Round your answer to the nearest 2 decimal places. DO NOT round until after all calculations have been completed and you have reached your final answer. If your answer ends in a zero, only include 1 decimal place and omit the zero. If the answer ends in two zeros after rounding, do not use any decimal places as ANGEL does not recognize the ".00" endings and will remove points from your score.)

Answer=

5. You purchases a house for $195101. You made a down payment of $20,000 and the remainder of the purchase price was financed with a mortgage loan. The mortgage loan is a 30 year mortgage with an annual interest rate of 7.6%. Mortgage payments are made monthly. What is the monthly amount of your mortgage payment? (Show your answer to the nearest cent. Round your answer to the nearest 2 decimal places. DO NOT round until after all calculations have been completed and you have reached your final answer. If your answer ends in a zero, only include 1 decimal place and omit the zero. If the answer ends in two zeros after rounding, do not use any decimal places as ANGEL does not recognize the ".00" endings and will remove points from your score.)

Answer=

1. Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $4898 with an annual interest rate of 8.5%. The loan will be repaid over 6 years with monthly payments.

Loan payment =

Interest portion =

Principle portion =

Loan balance after first monthly payment=

2. What is the most you would be willing to pay for a investment that will pay you $103 in one year, $199 in two years, and $178 in three years, if your required rate of return for this type of investment is 17.4%?

Value of investment =