6. Your uncle lends you $1000 today with the promise that you pay him back $1728 in three years. What rate of interest is he charging you? 7. Your company is required to pay into a sinking fund each year in order to meet an obligation which matures in 10 years. The amount of the obligation is $100,000 and you can earn 4% on your deposits. How much must your company deposit each year in order to meet these needs? 8. Your company borrows $150,000 agreeing to pay the balance in 10 equal installments to include principal plus 8% interest. What should the payments be? 9. Your aunt is 80 years old. Over the years she has accumulated savings of $170,000. She estimates that she will live another 10 years at the most and wants to spend her savings. She places her money in an account earning 7%. She will make 10 equal annual withdrawals. How much will she be able to withdraw each year? 10.A firm purchases 100 acres of land for $200,000 and agrees to remit 20 equal annual installments of $41,067 each. What is the annual interest rate on this loan? 11. Find the interest rates or rates of return on each of the following: a. You borrow $200 and promise to pay back $210 at the end of one year. b. You borrow $20,000 and promise to pay back $32,578 at the end of 10 years. c. You borrow $2000 and promise to make payments of $514.18 per year for five years. 12. You borrow $15,000 and agree to repay the balance in five equal annual installments to include principal plus 8% interest. What should the payments be? 13. Your company has a $1,000,000 bond issue that matures in 15 years. The bond indenture requires annual payments into a sinking fund. You figure that you can earn 10% on all deposits. What must the sinking fund payments be, assuming they are equal? 14. You are paying into a sinking fund that earns 6%. If the payments are $15,000 per year, how much will be in the fund in 15 years? 15. Your broker offers to sell you a note for $11,300 that will pay $2000 per year for 10 years. If you buy the note, what rate of interest will you be earning? 11. Find the interest rates or rates of return on each of the following: a. You borrow $200 and promise to pay back $210 at the end of one year. b. You borrow $20,000 and promise to pay back $32,578 at the end of 10 years. c. You borrow $2000 and promise to make payments of $514.18 per year for five years. 12.You borrow $15,000 and agree to repay the balance in five equal annual installments to include principal plus 8% interest. What should the payments be? 13.Your company has a $1,000,000 bond issue that matures in 15 years. The bond indenture requires annual payments into a sinking fund. You figure that you can earn 10% on all deposits. What must the sinking fund payments be, assuming they are equal? 14. You are paying into a sinking fund that earns 6%. If the payments are $15,000 per year, how much will be in the fund in 15 years? 15. Your broker offers to sell you a note for $11,300 that will pay $2000 per year for 10 years. If you buy the note, what rate of interest will you be earning
