Need help with 1,2,3,4,5,6,7,9 and 10.

need help with problem 2, 5, 6, 7, 9 and 10

2.3 Problems 1. You take out a loan to purchase a truck. The amount of the loan is $12,000, with the understanding that you will repay over 30 months at an interest rate of 1.25% per month. a) Find the amount of each monthly payment. b) How much of the principal will you have paid after completing twelve payments? 2. You expect that the operating costs for your new truck will be as follows: Year one -- $700; Year two -- $1000; Year three -- $1500; Year four -- $1800; Year five -- $2500. Draw a cash flow diagram for this series of expenses, assuming the end-of-year convention. Find the present worth of this series. Find the equivalent annual cost over five years of the five costs. Use an i-7% 3. How much will a series of ten semi-annual $1000 payments compound to, six months after the last payment, if interest is six percent per year, compounded semi-annually? 4. How much will a semi-annual gradient series, that begins at $500 and increases by $100 to $1400, compound to, six months after the last payment, if interest is six percent per year, compounded semi-annually? 5. What single amount would you need to place in a fund now in order to have $7500 six years from now, if the fund earns 8%, compounded quarterly? 6. Answer question 5 if the fund earns 4%, compounded quarterly 7. Answer question 5 if the fund earns 8%, compounded annually. 8. What single amount at time minus two is equivalent to equal periodic payments of 150 that occur at times one through twelve, inclusive, if i -6%? 9. What must be the size of equal annual contributions to a fund whose goal is to reach $1,000,000 after twenty-five years? Contributions will be made at the end of each year, and the interest rate will be 9%. 10. A young man started a computer company with an investment of$1500. Five years later, his investment had grown to $1.5 billion. Find the effective annual growth rate. 11 You start a fund with a deposit of $2000. Each year thereafter you add $500 to the fund, until you have made a total often $500 deposits. Three years after that last deposit, you withdraw $5000. Four years after that withdrawal, you withdraw everything that remains in the fund. Find that magic amount, if the interest rate is 5%. 2.3 Problems 1. You take out a loan to purchase a truck. The amount of the loan is $12,000, with the understanding that you will repay over 30 months at an interest rate of 1.25% per month. a) Find the amount of each monthly payment. b) How much of the principal will you have paid after completing twelve payments? 2. You expect that the operating costs for your new truck will be as follows: Year one -- $700; Year two -- $1000; Year three -- $1500; Year four -- $1800; Year five -- $2500. Draw a cash flow diagram for this series of expenses, assuming the end-of-year convention. Find the present worth of this series. Find the equivalent annual cost over five years of the five costs. Use an i = 7% 3. How much will a series of ten semi-annual $1000 payments compound to, six months after the last payment, if interest is six percent per year, compounded semi-annually? 4. How much will a semi-annual gradient series, that begins at $500 and increases by S100 to $1400, compound to, six months after the last payment, if interest is six percent per year, compounded semi-annually? 5. What single amount would you need to place in a fund now in order to have $7500 six years from now, if the fund earns 8%, compounded quarterly? 6. Answer question 5 if the fund earns 4%, compounded quarterly 7. Answer question 5 if the fund earns 8%, compounded annually. 8. What single amount at time minus two is equivalent to equal periodic payments of 150 that occur at times one through twelve, inclusive, ifi -6%? 9. What must be the size of equal annual contributions to a fund whose goal is to reach $1,000,000 after twenty-five years? Contributions will be made at the end of each year, and the interest rate will be 9% 10. A young man started a computer company with an investment ofS1500. Five years later, his investment had grown to $1.5 billion. Find the effective annual growth rate. 11 You start a fund with a deposit of $2000. Each year thereafter you add $500 to the fund, until you have made a total often $500 deposits. Three years after that last deposit, you withdraw 55000. Four years after that withdrawal, you withdraw everything that remains in the fund. Find that magic amount, if the interest rate is 5%