How to solve this work sheet using a financial calculator?

First Three Letters Name: ............................................................................................. Hmk-5B (Total about 20 pts.) Exercise #1: You want to retire in 22 years. To fund the retirement, you deposit $10,000 into an account now and plan to save an equal amount each year. Once you retire, you want to withdraw $45,000 at the end of each year for 18 years. r=6%. How much do you need to save at the end of each year for the next 22 years? Draw the time line, show your work or calculator entries. 000 |-----------------------------------------------------------------------------|----------------------------------------------------- You will need $ ................................................................ in your account 22 years from now to cover your retirement needs. You will need to save $ .................................................... per year. Exercise #2: An annuity pays $600 a year for 7 years; the first payment is in 4 years. r=6%. ? Draw the time line, show your work or calculator entries. |------------------------------------------|---------------------------------------------------------------------------------- The PV of the annuity is $.......................................... Exercise #3: An annuity due pays $400 a year for 4 years ? r=6%. What is its PV? What is its FV in 4 years? Draw the time line, show your work or calculator entries. |-------------------|----------------------------------------------------------------------------------------- PV = = $ ............................. FV = = $ ............................. By how much is the annuity due in Exercise #3 worth (PV) more than a 4-year $400 ordinary annuity? PV Ord Ann = $ ................................................. Difference = $ ................................................... Exercise #4: The inflation rate is 3% per year. How much is a car that will cost $73,000 in 25 years worth now? $ .................................... Exercise #5: You are leasing a car worth $32,000 for 36 months. You put down $1200 now and agree to monthly payments. The residual value is $17,000. The financing rate is 6% (monthly compounded). How much are your monthly payments going to be? Draw the time line, show your work or calculator entries. ...................... ........ ......... ......... ........ ................................... |--------------|--------|----------------------------------------------------------------------------------------| 0 1 2 36 $ .................................... Exercise #6: Do the following problems from Chapter 5, indicate calculator entries, and provide the answers here: 51. EAR = ................................%, 50. will have $ ................................. in 1.5 years. 66a. rr = .............................. % 62. APR = ................................... % EAR = ............................................ % 71b. PMT = $