Can you please answer all the questions below. Do not need to show solution

QUESTION 1

1. You invest $1,000 in an account that pays interest at 12 percent annual rate. How much would your investment grow to in 5 years?
2. 1,2721,6001,7621,8061,4721976

QUESTION 2

1. You invest $1,000 in an account that pays interest at 12 percent annual rate, compounded quarterly. How much would your investment grow to in 5 years?
2. 1,2721,6001,7621,47219761,806

QUESTION 3

1. You invest $1,000 in an investment that grew to $60,000 in 35 years.What annual rate of interest did you earn?
2. 5.25%8.24%10.17%12.41%14.21%14.72%

QUESTION 4

1. You plan to purchase a BMW sedan in six years for $85,000.You have saved $30,000 for the car and plan to invest this money to purchase the car.What rate of interest would you have to earn to be able to purchase the car after six years?
2. 19%17%15%13%11%9%

QUESTION 5

1. You plan to purchase a BMW M5 sedan for $85,000.You have saved $30,000 for the car and plan to invest this money to purchase the car.How many years would you have to wait if you can earn 12 percent annual rate, compounded quarterly?
2. 6.537.258.8110.5619.5435.23

QUESTION 6

1. How long would it take to quadruple your money at an annual rate of 8 percent?
2. 15 years16 years17 years18 years19 years20 years

QUESTION 7

1. You purchased a rare baseball card for $6,000 as an investment.Three years later you accidentally spilled coffee on it while working on your finance homework, and were forced to sell it for $4,500.What rate of return did you earn? (Hint: It is negative!)
2. -7.57%-9.14%-11.1%-8.86%-14.22-12.04%

QUESTION 8

1. Your rich uncle has promised to pay you $20,000 as a gift upon graduation in 2 years.You plan to invest it for 5 more years at 8.5 percent compounded monthly and use the money you have after 7 years as a down payment to purchase a house.What will be the amount of the down payment? (Answers are rounded.)
2. 28,500
3. 29,250
4. 30,550
5. 36,180
6. 40,400
7. 42,700

QUESTION 9

1. Shady Investment Company offers an investment that promises to double your money in 15 months. This investment promises to credits interest to your account every quarter.What quarterly rate must the investment earn to meet the promised return?
2. 14.8718.5722.5936.9959.4862.55

QUESTION 10

1. Loan Shark Company provides short term loans.They will loan you $4 today and expect $5 back in one week!What is the APR for this loan?
2. 25%125%257%598%1,125%1,300%

QUESTION 11

1. Loan Shark Company provides short term loans.They will loan you $4 today and expect $5 back in one week!What is the EAR for this loan?
2. 10,947,544.25%67,600.00%875,287.42%1,300,000.00%47,987.29%527,668.34%

QUESTION 12

1. Recently, Lowell Baseball team signed Jayson Fastball to a 15 year contract. The contract is for equal payments of $4.5 million each year for the next 15 years.If you assume a 10 percent discount rate, what is the true value (i.e. PV) of this contract?
2. $134 million$67.5 million$85 million$143 million$97 million$34 million

QUESTION 13

1. Recently, Lowell Baseball team signed Jayson Fastball to a 15 year contract. The contract is for equal payments of $4.5 million each year for the next 15 years.If you assume a 10 percent discount rate, what is the future value of this contract?
2. $34 million$67.5 million$85 million$143 million$97 million$34 million

QUESTION 14

1. You plan to retire with $500,000 savings.You can make a deposit of $150 per month into a retirement saving account that pays 12 percent annual interest compounded monthly.How many years will you have to wait to retire?
2. 18 years30 years98 years123 years198 years277 years

QUESTION 15

1. You plan to retire with $500,000 savings.How much should you deposit annually into a retirement saving account that pays 10 percent annual interest if you plan to retire in 15 years?
2. $33,333$47,258$18,415$15,737$13,486$11, 987

QUESTION 16

1. You buy a house worth $350,000 with 20% down payment and a 30-year mortgage on the remaining value. If your monthly payment is $1,500, what is the annual percentage rate (APR) for the mortgage?
2. 2.82%3.62%4.98%5.10%5.95%6.12%

QUESTION 17

1. You buy a house worth $350,000 with 20% down payment and a 30-year mortgage on the remaining value. If your monthly payment is $1,500, what is the effective annual rate (EAR) for the mortgage?
2. 2.82%3.62%4.98%5.10%5.95%6.12%

QUESTION 18

1. You borrow $350,000 at 8 percent compounded monthly. How many years will it take to pay back the loan if the monthly payment is $2,960?
2. 10233.619.515627.817.2

QUESTION 19

1. Note: Use this information for Q. 19 and Q 20.
2. Ms. Patricia Sullivan plans to create a fund from her lottery winnings to meet three objectives. First, she wants to create a fund so that her mother can withdraw $20,000 per month for the remainder of her expected life of 20 years. Second, she wants to pay the down payment for her brother to buy a house upon graduation from college four years from now. She expects that he will need $100,000 for down payment at that time. Finally, she wants to retire after 15 years and be able to withdraw $30,000 per month starting a month from her retirement. She expects to live for 30 years after retirement. All monies earn 8 percent compounded monthly and all cash flows occur at the end of the relevant period. (Answers are rounded.)
4. How much money does she need to invest today to meet her first objective?
5. $1.7 million$2.4 million$3.2 million$3.7 million$4.2 million$4.5 million

QUESTION 20

1. How much money does she need to invest today to meet all three objectives?
2. $1.7 million$2.4 million$3.2 million$3.7 million$4.2 million$4.5 million