#12, 13, 19, 22, 24, 27, 30, 32, 36, 37, 41, 42, 43, 49Sorry for all the questions, I just hate paying 3$ per question. Thank you so much for the help.

554 CHAPTER 11 The Nature of Financial Management 43. Finance $450,000 for a warehouse with a 6.5% 30-year loan 8. $150; 5%; 30 yr 44. Finance $859,000 for an apartment complex with a 3.2% 9. $150; 6%; 30 yr 20-year loan 10. $150; 8%; 30 yr 45. How much interest (to the nearest dollar) would be saved in 11. $1,050; 5%; 30 yr Problem 41 if the home were financed for 15 rather than 30 years? 12. $1,050; 6%; 30 yr 46. How much interest (to the nearest dollar) would be saved in Use a calculator to evaluate the amortization formula Problem 42 if the condominium were financed for 15 rather P() than 30 years? m = 1 - ( 1 + / ) - " 47. Melissa agrees to contribute $500 to the alumni fund at the for the values of the variables P, r, and t ( respectively) given in end of each year for the next 5 years. Shannon wants to match Melissa's gift, but she wants to make a lump-sum contribu- Problems 13-20. Assume n = 12 tion. If the current interest rate is 2.5% compounded annu- 13. $14,000; 5%; 5 yr 14. $14,000; 10%; 5 yr ally, how much should Shannon contribute to equal Melissa's 15. $14,000; 19%; 5 yr 16. $150,000; 8%; 30 yr gift? 17. $150,000; 9%; 30 yr 18. $150,000; 10%; 30 yr 48. Arnie agrees to contribute $2,500 to the road fund at the end of each year for the next 10 years. Jack wants to match Arnie's 19. $260,000; 12%; 30 yr 20. $260,000; 9%; 30 yr contribution, but he wants to make a lump-sum contribution today. If the current interest rate is 1.5% compounded annu- Find the present value of the ordinary annuities in ally, how much should Jack deposit to equal Arnie's annual Problems 21-32 deposits? 49. A $1,000,000 lottery prize pays $50,000 per year for the next Amount of Deposit Frequency Rate Time 20 years. If the current rate of return is 2.25%, what is the pre- sent value of this prize? m r 50. You look at your budget and decide that you can afford $250 21. $500 annually 8% 30 yr per month for a car. What is the maximum loan you can afford 22. $500 annually 6% 30 yr if the interest rate is 3% and you want to repay the loan in 4 23. $250 semiannually 8% 30 yr years? 24. $600 semiannually 2% 10 yr 25. $300 quarterly 6% 30 yr Level 3 26. $100 monthly 4% 5 yr 51. Suppose you have an annuity from an insurance policy 27. $200 quarterly 8% 20 yr and you have the option of being paid $250 per month for 28. $400 20 years or having a lump-sum payment of $25,000. Which quarterly 1% 20 yr has more value if the current rate of return is 4.5%, com- 29. $30 monthly 8% 5 yr pounded monthly? $75 monthly 4% 10 yr 52. An insurance policy offers you the option of being paid $750 31. $50 monthly 8.5% 20 yr per month for 20 years or a lump sum of $100,000. Which has 32. $100 quarterly 3% 20 yr more value if the current rate of return is 5.5%, compounded monthly, and you expect to live for 20 years? Level 2 53. I recently found a real-life advertisement in the newspaper: Find the monthly payment for the loans in Problems 33-44. a-7:30p LOAN WANTED: $150,000, se- sold unless ffordable. cured by approx. . $600,000 clearly indic 33. $500 loan for 12 months at 12% 555-8310. equity In four se e proper- |and telemai Pay 14yo and ive pro tain the ba Massage Have exc. credit. 555-4285. then eami 34. $100 loan for 18 months at 18% 55 In/or * * * WE PAY CASH * * * implied. CARE for R.E notes, lotteries, annuities, ma evi 35. $4,560 loan for 20 months at 21% 555- 672 bus. notes, Inheritances. Please advertiseme call 800-555-7853. do no quirement 36. $3,520 loan for 30 months at 19% OUCH 2 ENTREPRENEURS need Invest not be respi 8-3590 * to establish a juice error, we as 37. Used-car financing of $2,300 for 24 months at 15% Min. 15% be reported interest. 555-4668. may take : $6000 NEEDED for 90 days, 20% CLASSIFIER 38. New-car financing of 2.9% on a 30-month $12,450 loan Massage interest. '62-'72 corvettes, Hunter's I $12K val. or R.E. for collateral trade-hire 39. Furniture financed at $3,456 for 36 months at 23% 555-5312 Iv. msg. aft 6pm. vice, the 40. A refrigerator financed for $985 at 17% for 15 months 41. A $512,000 home bought with a 20% down payment and the Only the phone number has been changed.) Suppose that balance financed for 30 years at 5.1% you have won a $20,000,000 lottery, paid in 20 annual instal 42. A $258,000 condominium bought with a 30% down payment ments. How much would be a fair price to be paid today for and the balance financed for 30 years at 3.05% assignment of this prize? Assume the money could be inve at 5%