Question
a. What is the future value of a deposit of $7,500 for 8 years at 5% interest rate (compounded annually)? b. What is the future
a. What is the future value of a deposit of $7,500 for 8 years at 5% interest rate (compounded annually)?
b. What is the future value of an annuity of $500 for 9 years at 8% interest rate compounded annually? Please sketch the cash flow diagram also.
c. Monthly deposit = $1,000 (at the end of the month); Interest rate = 12% compounded monthly for 5 years, FV =?
d. You buy a house in $200,000. Your down payment is $20,000. APR=3.375%. Assume you make payments at the end of each month. Amortize the loan for first three months of your payment. Assume it is a 30-year mortgage.
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