Note: Answer with Explanation...Thanks

Question:

1. What is the value today or lump sum equivalent of receiving $500 every year for the next 10 years if the interest rate is 5%?
2. Your grandmother has offered to give you $2,000 per year for the next 5 years. What is the present value of this 5-year, $2,000 annuity discounted back (interest rate) to the present at 5%.
3. What is the present value of an annuity of $1,000 to be received at the end of each year for 10 years given a 10 percent discount rate (interest rate)?
4. Suppose you plan to get a $10,000 loan from a furniture dealer at 10% annual interest with annual payments that you will pay off in over five years. What will your annual payments be on this loan?
5. You have just found the perfect home. However, in order to buy it, you will need to take out a $30,000, 10-year mortgage at an annual rate of 5 percent. What will your monthly mortgage payments be?
6. Let's say that exactly ten years ago you took out a $100,000, 20-year mortgage with an annual interest rate of 10 percent. Calculate the monthly payments. But since you took out that loan, interest rates have dropped. You now have the opportunity to refinance your loan at an annual rate of 5 percent over 10 years. You need to know what the outstanding balance on your current loan is so you can take out a lower-interest-rate loan and pay it off. If you just made the 120th payment and have 120 payments remaining, what's your current loan balance? What will be your new monthly payment if you can do the refinancing?
7. Aida deposit RM 1000at the end of each year for 10 years. Calculate the amount of money in her account after 10 years if she earns 4 % of interest.
8. Hana wishes to have RM 65,000 at the end of twelveyears. Calculate her yearly payment if she earns 6% of interest.
9. Suppose you would like to have RM 75,000 saved 10 years from now to pay towards your down payment on a new house. If you are going to make equal annual end-of-year payments to an investment account that pays 5%, what is the annual paymentneed to be?
10. How much must you deposit monthly in a savings account earning 6% interest in order to accumulate RM 10,000 at the end of 10 years?
11. If you can earn 10% on your investments, and you would like to accumulate RM 150,000 for your child's education at the end of 20 years, what is your annual payment?
12. You want to make a loan to buy a car.The loan is RM 45000.00 @ an interest rate of 6% per year. What is your annual payment if you want to pay back in 5 years. What is the present value of your loan.
13. You want to make a loan for your education.The loan is RM 50,000.00 @ 6% interest rate annually. What is your annual payment?
14. You want to make a loan to buy a house.The loan is RM 200, 000.00 @ interest rate of 6%.What is your monthly payment if you want to pay back in 25 years? ( Treat the loan as your future value and months of payment as your period of payback)
15. You want to make a personal loan.The loan is RM 60,000.00 @ interest rate of 4%. What is your monthly payment if you want to pay back in 8 years? ( Treat the loan as your future value and months of payment as your period of payback)
16. You want to make a loan to buy a car.The loan is RM 85,000.00 @ 4% interest rate. What is your monthly payment if you want to pay back in 9 years? ( Treat the loan as your future value and months of payment as your period of payback)
17. You want to make a loan to buy a furniture.The loan is RM 5,000.00 @ 10% interest rate.What is your monthly payment if you want to pay back in 5 years? ( Treat the loan as your future value and months of payment as your period of payback)