16. Suppose you want a new car and can afford to make payments of $500 a month for 5 years. If the interest rate is 6% per year, compounded monthly, how much can you borrow? 17. Suppose you are offered an Investment that will pay you $8,000 a month for 20 years. If your required return is 9% per year, compounded monthly, what would you be willing to pay for this Investment? 18. Suppose you want to buy a house and can afford to make payments of $2000 a month for 30 vears. If the interest rate is 5% per year, compounded monthly, how much can you borrow? 19. Suppose you borrow $500,000 to buy a house. If you have a 30 -year mortgage and the Interest rate is 9% per year, compounded monthly, what is your monthly payment? $500,000.00=PMT[1][1/(1+0.0075)300]1/0.0075PMT=$4,023.11 20. Suppose you borrow $30,000 to buy a car. If you have a 5 -year loan and the interest rate is 6% per year, compounded monthly, what is your monthly payment? 21. Suppose you have student loans totaling $25,000. If you plan to pay it off in 10 vears, and the interest rate is 8% per year, compounded monthly, what is your monthly payment? 9. Suppose you accumulate $7,000 after investing $20 weekly for 5 years. What interest rate/return did you earn? State your answer as an APR 10. Suppose you hope to accumulate $300,000 after Investing a consistent amount monthly for 10 vears. If you can earn an APR of 7.00%, how much do you need to save monthly? $300,000.00=PMT[(1+0.0058)201]1/0.006PMT=$1,733.25 11. Suppose you hope to accumulate $1,000,000 after investing a consistent amount yearly for 30 years. If you can earn an APR of 4.00%, how much do you need to save yearly? 12. Suppose you hope to accumulate $50,000 after investing a consistent amount daily for 5 years. If you can earn an APR of 6.00%, how much do you need to save daily? 13. Suppose you hope to accumulate $2,000,000 after Investing a consistent amount monthly for 20 years. If you can earn an APR of 12.00%, how much do you need to save monthly? 14. Suppose you hope to accumulate $20,000 after investing a consistent amount weekly for 10 years. If you can earn an APR of 5.00%, how much do you need to save weekly? 22. Suppose you borrow $1,000,000 to buy a house. If you have a 30 -year mortgage and the interest rate is 5% per vear, compounded monthly, what is your monthly payment? 23. Suppose you borrow $500,000 to buy a house. If your monthly payments on the 15 -year mortgage are \$4,500, what interest rate are you paying? State your answer as an APR 24. Suppose you borrow $40,000 to buy a car. If your monthly payments on the 5 -year loan are $800, what interest rate are you paying? State your answer as an APR 25. Suppose you borrow $1,000,000 to buy a house. If your monthly payments on the 30 -year mortgage are $5,700, What interest rate are you paying? State your answer as an APR 26. Suppose you borrow $250,000 to buy a house. If your monthly payments on the 15 -year mortgage are \$1,900, what interest rate are you paying? State your answer as an APR
