1.

You need to pay a tuition bill of $45,598 in 9 months. If your investment account pays

3.6% APR compounded monthly; how much do you have to deposit today to fund the tuition

payment?

2.

You need to fund a tuition payment of $44,678 in 17 months. You plan to make 7 equal

monthly payments starting next month to your savings account to go toward your tuition. If

your savings account pays 3.9% APR compounded monthly, how big must the payments be?

(a/(1+c/1200)^f)

3.

What is the market value of Investment XYZ if it pays $2,425 per month, starting next month,

for 7 months and the interest rate is 3.76% APR compounded monthly?

4.

You spent $2,588 on Christmas gifts and put the purchases on your credit card. Your credit

card has a 16.84% APR compounded monthly. If you want to pay off your credit card balance

in 15 months, the first payment next month, how big are the monthly payments?

Calculate your answer to two decimal places (e.g. 55.93)

5.

You want to buy a car thats currently priced at $25,087. The price of the car in one year will be $23,274 since it will be last years model. You currently dont have anything in your bank account. Consequently, if you buy the car today you will borrow $25,087 from your parents who will charge you 3.76% APR compounded monthly. You will repay the entire loan balance in one year if you decide to buy the car today.

How much will you save (viewed as of one year from now) if you wait to buy the car?

6.

How much would you pay today for an investment that provides you $2,380 each year for the

next 9 years, starting next year, and $14,504 13 years from now if the interest rate is 3.44% APR compounded annually?