A

1) You are investing $100 today. How much will you have in 8years if you earn 6% per year?

2) You are investing $80,000 today. How much will you have in 20 years if you earn 5% per year?

3) What is the present value of $10,000 paid 8 years from now discounting at a rate of 12%?

4) If you want to have $40,000, 6 years from now, how much must you invest today if you expect a return of 8%?

5) You invest $10,000 today and end up with $14,000 two years from now? What was your annual return?

6) You have $25,000 to invest now and want to have $60,000 sometime in the future. If you earn 8% on your investments, how long will this take?

B

1) You are investing $500 today. How much will you have in 8 years if you earn 6% per year?

2) What is the present value of $20,000 paid 6 years from now discounting at a rate of 12%?

3) You will be saving $2,000 per year an interest rate of 6%. How much will you have after 10 years?

4) You want to have $20,000, 5 years from now. How much must you save each year if the interest rate is 6%?

5) You can save $4,000 each year. If you want to have $40,000 after 6 years, what interest rate would you need to earn?

6) You can save $4,000 each year. If you want to have $40,000 and can invest at an interest rate of 14%, how long will it take you?

7) You are given a gift of $10,000 which you put in the bank and earn an interest rate of 2% compounded semiannually. How much will you have after 6 years?

8) You are getting a 30year mortgage at an interest rate of 6% per year. If you borrow $300,000, what will be your monthly payment?

9) You are getting a 30year mortgage at an interest rate of 6% per year. If you can pay $2,000 per month, what is the most you can borrow?

10) You can save $200 per month. If you earn 12% per year compounded monthly, how much will have after 8 years?

11) If you earn 12% per year compounded monthly and you want to have $40,000 after 8 years, how much must you save per month?

12) If you can save $200 per month and want $40,000 after 8 years, what (annual) interest rate compounded monthly do you need to earn?

13) If you can save $200 per month and want $40,000 and earn an annual interest rate of 12% compounded monthly, how long would it take in years?

14) You have a 4year auto loan at 18 % per year compounded monthly. If you want to borrow $20,000, what would be your monthly payments? Assume that payments are made at the start of the month.

15) You are planning on working and saving for 30 years at which point you ll live off your savings while you are retired. Assume that you earn 3% compounded monthly on your investments when you are retired and 6% compounded monthly when you are working. If you plan on being retired for 20 years and need $4,000 per month when retired, how much must you save each month when you are working?