Question
A) You want to have $25100 in your savings account 28 years from now, and you're prepared to make equal annual deposits into the account
A) You want to have $25100 in your savings account 28 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 4 percent interest, what amount must you deposit each year?
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B) What is the EAR if the APR is 15 percent compounded monthly? Enter answer with 4 decimals (e.g. 0.1234)
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C)What is the EAR if the APR is 10 percent compounded daily? Enter answer with 4 decimals (e.g. 0.1234)
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D) What is the future value of $9200 in 15 years assuming an interest rate of 7 percent compounded monthly?
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E) Maybepay Life Insurance Co. is selling a perpetual contract that pays $6900/year. The contract currently sells for $149000. What is the rate of return on this investment? Enter answer with 4 decimals (e.g. 0.1234).
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F) You expect to graduate with $34100 in student loans. The interest rate on your loan is 7.8 percent compounded monthly and the loan calls for fixed monthly payments. If you repay the loan in 22 years how much are you paying in total interest over the life of the loan? (HINT: you need to calculate the monthly payment first).
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