FV/PV Annuity Problems

Problem H-4 HB 302 FV/PV Annuity Problems 1. Carly is saving to open her own business in ten vears. She currently has $10,000 and she plans to save $2,000 per year for the next five vears and $3.000 each year for the following five years. How much will she have in 10 years if she earns a 10% return on her savings? 2. What is the rate of interest on a $10,000 loan that is to be repaid in in ten equal install- ments of $1917.14? 3. You know you will need $25,000 at the end of five years. How much will you need to deposit annually, starting at the end of the first year into an investment account earning 10% to accumulate the needed amount? 4. What is the annual payment on a 30 year loan at 6% interest when $200,000 is borrowed? 5. What is the monthly payment on a 30 year loan at 6% interest when $200,000 is borrowed? 6. What amount of interest is paid with the first payment on the loan in question 57 7. What amount of interest is paid with over the life of the loan in question 5? 8. The Alpha Caf rennovated its dining room for $100,000 and they owner believes over the next ten years that the benefit will be $16,273.80 per year. Determine the ROI on this rennovation