1. At the end of each year you plan to deposit 2,000 in a savings account that earn 7.25% per year. When will you have 101,070.55 in your account (or how many years will it take you have that amount)?
2. How much should you deposit today in a savings account that earns 8% per year so that: 16 years from today, you will have 4,282.43 in your account?
3. Today you deposit $1000 in a saving account carrying an annual interest rate of 6%, what will be the balance of your account 20 year from today?
4. If you deposit $500 at the end of each year for the next 25 years in a saving account that earn an annual interest rate of 9%, what will be the balance in your account at the end of the 25-year period?
5. You invest $2000 today in a saving account that pays 8%/year. 1 year from today, you make another investment of $3000 in the same saving account, earning the same 8%/year. What will be your account balance 20 years from today?
6. John borrows $30,000 to buy a new car from a local bank with 0.55% interest rate per month. He agrees to pay off the loan in 36 equal end-of-month payments. The first payment will be made at the end of this month.

a. What should be the monthly payment?

Report the answer with 2 numbers after decimal place

b. Show Amortization table showing his payment, interest payment, principal payment and loan balance over time. What is the Total Interest payment of the loan over the 36 months?

NOTE: if the loan balance is not equal to 0 at the end, you did something wrong!

Report the answer with 2 numbers after decimal place

c.What must be the interest rate so that the total interest he pays to the bank over the life of the loan is 4,343.71?

Report the answer in percentage term with 2 numbers after decimal place such as 12.43%.

7.At the beginning of the year, you bought a regular bond with following information:

Face value: 10,000

Coupon rate: 6.25%

Coupon payment is made at the end of each year

Interest rate (or require rate of return): 5%

Maturity: 25 years

a.What should be the fair value/price of the bond?

Report the answer with 2 numbers after decimal place

b.If the market price for this bond is 7,749.65 and you decided to pay that price to own the bond and hold it till maturity, what is the rate of return you should receive?

Report the answer in percentage term with 2 numbers after decimal place such as 12.43%.

8. Assuming a project having the following cash flows: