21. What will be the approximate population of the United States, if its current population of 316 ,000,000 grows at a compound rate of 2
21.
What will be the approximate population of the United States, if its current population of
316
,000,000
grows at a compound rate of 2
.
3
% annually for
30
years?
(Enter your answer rounded to the nearest
whole number; for example, record 218
,
934
,210.86
as
218934211
).
22.
Assume that a gallon of milk costs $
3.
50
today. If the average annual inflation rate over the past
35
years was 2.75% p.a., what did a gallon of milk cost
35
years ago?
23.
What is the future value on the day of the last deposit of
2
5
annual deposi
ts of $
75
0 per year (first
deposit to be made today) given an interest rate of 5.5% p.a.?
24.
Assume that I
will
deposit $750 into an account exactly 10 years from today. How much will be in my
account at the end of year
60
(i.e., 60 years from today)
, assumin
g that my account pays interest of
4
.5% p.a.?
25.
The ShortHolder bank pays 5.60%
p.a.
,
but with daily compounding assume a
360
-
day
year
), on a 9
-
month certificate of deposit. If you
deposit $20,000 you would expect to earn
__________ in interest
(rounded to the nearest dollar)
.
26.
With continuous compounding at 8
% p.a.
for 20 years, what is the approximate future value of a
$20,000 initial investment
(rounded to the nearest dollar)
?
27.
For $1,000
Laura Croft
can purchase a 5
-
year ordinary annuity which will pay
her
a yearly payment
of $263.80 for 5 years. What is the annual interest rate implicit
in this investment
? Round your
an
swer to the near
est tenth (for example, record 0.4325 as 43.3%
-
but do not include the percent sign
in iCollege)
.
28.
Nathan Drake is
considering borrowing $100,000 for 30 years at a compound annual interest rate of
9
% p.a.
The
loan agreement calls for 30 equal annual payments, to be paid at the end of each of the
next 30 years
(p
ayments include both principal and interest.)
What is the annual payment that will
fully amortize
Nathan
'
s
loan?
29.
Cl
oud Strife is
going to place $12,500 into a certificate of deposit (CD) at a 6% annual rate
(compounded annually) with a maturity of 30 months. How much money will
Clou
d
receive when the
CD matures?
30.
Clementine and Lee
expect to deposit the following cash flows at the end of years 1 through 5,
$1,000; $4,000; $9,000; $5,00
0; and $2,000 respectively. Alternatively,
they
could deposit a single
amount today
and have the same amount in your account at the end
of y
ear 5
. How large does the
single deposit need to be today if
Clementine and Lee
can earn 10% compounded annually
on their
account
?
Part II: PROBLEMS 7 Compute a nal numerical answer for each of the following problems. Unless specically instructed in a question to do otherwise, round all dollar answers to 2 decimal places, round time (years or months) answers to one (1) decimal place and record interest rates as percent values rounded to one (1) decimal place. However, be sure to NOT input a dollar sign, commas, or a percent sign on iCollege. For example, record $3,284.33965 as 3284.34, record 37.285432 years as 37.3 and record .064358 = 6.4358% as 6.4. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. What will be the approximate population of the United States, if its current population of 316,000,000 grows at a compound rate of 2.3% annually for 30 years? (Enter your answer rounded to the nearest whole number; for example, record 218,934,21086 as 218934211). Assume that a gallon of milk costs $3.50 today. If the average annual ination rate over the past 35 years was 2.75% pa, what did a gallon of milk cost 35 years ago? What is the future value on the day of the last deposit of 25 annual deposits of $750 per year (rst deposit to be made today) given an interest rate of 5.5% p.a.? Assume that I will deposit $750 into an account exactly 10 years from today. How much will be in my account at the end of year 60 (i.e., 60 years from today), assuming that my account pays interest of 45% pa? The ShortHolder bank pays 5.60% pa, but with daily compounding assume a 360-day year), on a 9- month certicate of deposit. If you deposit $20,000 you would expect to earn in interest (rounded to the nearest dollar). With continuous compounding at 8% pa. for 20 years, what is the approximate future value of a $20,000 initial investment (rounded to the nearest dollar)? For $1,000 Laura Croft can purchase a 5-year ordinary annuity which will pay her a yearly payment of $263.80 for 5 years. What is the annual interest rate implicit in this investment? Round your answer to the nearest tenth (for example, record 0.4325 as 43.3% - but do not include the percent sign in iCollege). Nathan Drake is considering borrowing $100,000 for 30 years at a compound annual interest rate of 9% pa. The loan agreement calls for 30 equal annual payments, to be paid at the end of each of the next 30 years (payments include both principal and interest.) What is the annual payment that will fully amortize Nathan's loan? Cloud Strife is going to place $12,500 into a certicate of deposit (CD) at a 6% annual rate (compounded annually) with a maturity of 30 months. How much money will Cloud receive when the CD matures? Clementine and Lee expect to deposit the following cash ows at the end of years 1 through 5, $1,000; $4,000; $9,000; $5,000; and $2,000 respectively. Alternatively, they could deposit a single amount today and have the same amount in your account at the end of year 5. How large does the single deposit need to be today if Clementine and Lee can earn 10% compounded annually on their account? What is the future value at the end of year 18 of $10,000 deposited today into an account that pays interest of 4.5% p.a., but with daily compounding (assume 365 days per year)? Ellie is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $11,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Ellie believes that she should earn an annual rate of 8 percent on this investment. How much should Ellie pay for this investment