Question
a. Suppose you borrowed $50,000 on a student loan at a rate of 8% and must repay it in three equal installments at the end
a. Suppose you borrowed $50,000 on a student loan at a rate of 8% and must repay it in three equal installments at the end of each of the next 3 years. How large would your payments be; how much of the first payment would represent interest, how much would be principal; and what would your ending balance be after the first year?
b. A companys sales in 2019 were $100 million. If sales grow at 9%, what will they be 10 years later, in 2029?
c. How much would $1 growing at 4% per year be worth after 100 years? What would the FV be if the growth rate were 8%?
d. It is now January 1, 2019, and you will need $1,000 on January 1, 2023, in 4 years. Your father offers to give you $400 on January 1, 2020. You will then make six additional equal payments each 6 months from July 2020 through January 2023. If your bank pays 8% compounded semiannually, what is the APR on the earned account?
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