1A. Your uncle estimated that he needs to pay 10,000$ per year when his child will be in UG studies for 4 years after 18 years from now. If the rate of return is 8.5, how much to invest now?

2A. Your parent gives you 10,000 and they want you to buy a house after 20 years with a rate of return of 7%, how much money there will be for you after 20 years?

2B. If your parents give you 5000 every two years three times from now to help you in buying a house after 20 years with a rate of return of 7%, how much money there will be for you after 20 years?

3A. If you want to donate in donate a scholarship, how much you should pay now that forever you can pay 20000 forever with an interest rate of 5%?

3B. If you want to donate in donate a scholarship, how much you should pay now that you can pay 20000 forever with an interest rate of 5% and increase the scholarship by 2% to cover inflation every year?

4A. you have a mine you are going to make one million profit each year and RoR is 15 % but every year you mine you lose 5 % in the value of the mine, How much you should pay for the mine now?

5. How much a person should pay for a donation that after 10 years, the donation can generate 20,000 donations per year forever ( Interest rate is 5%).

6 A. you are saving 1000 every month for your retirement plan. If your fund can have an interest of 9% per year. How much will there be when you retire after 25 years?

6B. You want to buy a house, and the bank says you have to pay 40,000 per year for 30 year, how much the bank will give you with an interest rate of 5% ?

7. You want to buy a house, and the bank says you have to pay 4,000 per month for 30 year, how much the bank will give you with an interest rate of 5% ?

Get the interest monthly !

8. A bond is on sale with a coupon rate of 5% and a face value of 1000, the market rate interest is 6.5%. Maturity is 13 years. What is the price of the bond?

8B. A bond is on sale with a coupon rate of 5% and a face value of 1000 with semi annually payment, the market rate interest is 6.5%. Maturity is 13 years. What is the price of the bond?

ANSWER ALL QUESTIONS AND GIVE CALCULATIONS