1. Please answer the following questions. You must show all work (ie show formulas or provide a discussion of your process) and identify all variables for any credit to be awarded. You may use the tables in the appenxid, a financial calculator or the formulas provided in the text. Please submit your work as a Word doc attached to this assignment link. Each problem will be weighted equally.

   1. You wish to borrow $18,000 to buy a new car. The rate is 8.6% over 4 years with monthly payments. What is the amount of the payment?

   2. How much money must you set aside at age 20 to accumulate retirement funds of $100,000 at age 65 assuming a rate of interest of 7%?

   3. If you deposit $2,000 in a 5-year certificate of deposit at 5.2% how much will it be worth in 5 years?

   a. Assume annual compounding

   b. Assume quarterly compounding

   4. You chose to invest $50 a month in a 401(k) that invests in an international stock mutual fund. Assuming an annual rate of return of 9% how much will this fund be worth if you are retiring in 40 years?