Part 2: (5 marks) Answer each question using the time value of money table. Show me the steps of solving, writing the answers only are not acceptable) 1. If you deposit money today into an account that pays 6 percent interest annually. How long will it take for you to double your money (Use rounding answer 2. Your parents are planning to retire after 1 years. They cuently have S350000, and they would like to have S1183000, when they retine. What antial role of interest would they have to cam on their 5350000 order to teach their goal, assuming they save no more money? 3. A-You are thinking about buying a car, and a focal bank is willing wo lend you SS0000 to buy it. Linder the terms of the loan, it will be fully mortured over 2 years (24 month, and the nominal te of interest is 12 percent with interese paid monthly. What would be the monthly payment on the on? B-What would be the effective rate of interest on the 4. Which amount is worth more at percent interest rate compounded army 55000 in hand today or $6000 dae after years! Explain your owwer? 5. While you were a student in college, you borrowed 521400 in student kom at an interest rate of 8 percent, compounded ammually. If you repay 59500 per year, how long to the nearest year, will take you to repay the loan? 6. Your client is 40 years old and wants to begin saving for strement. You advise the client to put 53.000 a year into the stock market. You estimate that the market's retum will be on weg. 10 percent year. Assume the investment will be made at the end of each year. If the client follows your advice, how much will she barve by ape 65 7. Adams Company bought a piece of land in 1981 for $200,000. By 2005, valoe had increased to $1,014.400 Find the annual med appreciation during this period * A downtowo bank is advertising that if you deposit $1.000 with them, and leave it there for months, you can get 52091 back at the cad of this perit Assuming monthly compounding. what is the annual rate of interest paid by the bank Cincinnati Company has decided to put 320.000 per quarter in a fund The fund will cam interest at the rate of 8% per yeat. compounded gutty Find the amount available in this fondatter 10 years 10 Suppose you want to secumulate $9.365.00 for a down payment for a home You will deposit 5.000 at the ending of every months in account that credits interest every 2 months at the rate of 8% per animam. How long will it take you to achieve your goal? Part 2: (5 marks) Answer each question using the time value of money table. Show me the steps of solving, writing the answers only are not acceptable) 1. If you deposit money today into an account that pays 6 percent interest annually. How long will it take for you to double your money (Use rounding answer 2. Your parents are planning to retire after 1 years. They cuently have S350000, and they would like to have S1183000, when they retine. What antial role of interest would they have to cam on their 5350000 order to teach their goal, assuming they save no more money? 3. A-You are thinking about buying a car, and a focal bank is willing wo lend you SS0000 to buy it. Linder the terms of the loan, it will be fully mortured over 2 years (24 month, and the nominal te of interest is 12 percent with interese paid monthly. What would be the monthly payment on the on? B-What would be the effective rate of interest on the 4. Which amount is worth more at percent interest rate compounded army 55000 in hand today or $6000 dae after years! Explain your owwer? 5. While you were a student in college, you borrowed 521400 in student kom at an interest rate of 8 percent, compounded ammually. If you repay 59500 per year, how long to the nearest year, will take you to repay the loan? 6. Your client is 40 years old and wants to begin saving for strement. You advise the client to put 53.000 a year into the stock market. You estimate that the market's retum will be on weg. 10 percent year. Assume the investment will be made at the end of each year. If the client follows your advice, how much will she barve by ape 65 7. Adams Company bought a piece of land in 1981 for $200,000. By 2005, valoe had increased to $1,014.400 Find the annual med appreciation during this period * A downtowo bank is advertising that if you deposit $1.000 with them, and leave it there for months, you can get 52091 back at the cad of this perit Assuming monthly compounding. what is the annual rate of interest paid by the bank Cincinnati Company has decided to put 320.000 per quarter in a fund The fund will cam interest at the rate of 8% per yeat. compounded gutty Find the amount available in this fondatter 10 years 10 Suppose you want to secumulate $9.365.00 for a down payment for a home You will deposit 5.000 at the ending of every months in account that credits interest every 2 months at the rate of 8% per animam. How long will it take you to achieve your goal
