please help solve
7. A borrower borrows on a five year loan $5,000 from a bank at 10% and will pay back the loan in twenty equal $ payments (quarterly) at the end of each time period. How much is each equal payment, how much principal and interest is paid back, and how much interest is paid back? (Note-since the borrower repays the loan quarterly, the % is divided by 4 and the exponent ( 5 years) is multiplied by 4 ). Also since it is a loan(payment), calculate the factor and then divide the factor into the $5,000, do not multiply the factor by the $5,000. - 8. A borrower borrows on a five year loan $5,000 from a bank at 10% and will pay back the loan in sixty equal \$ payments (monthly) at the end of each time period. How much is each equal payment, how much principal and interest is paid back, and how much interest is paid back? (Note-since the borrower repays the loan monthly, the \% is divided by 12 and the exponent ( 5 years) is multiplied by 12). Also sidce it is a loan(payment), calculate the factor and then divide the factor into the $5,000, do not multiply the factor by the $5,000. (.10/12)=8.333333333 03=(.008333333) - 9. An investor dollar cost averages and invests $250 at the end of each month for 28 years earning 7%. How much is the portfolio worth after 28 years? (.07/12)=5.83333333303= (.005833333) 4. An investor dollar cost averages and invests $100 at the end of each time period (monthly) in a 401K mutual fund, the return is 6%. How much is the mutual fund worth in 30 years? (Note-since the investor invests monthly, the % is divided by 12,.06/12= (5.03)=.005 and the exponent ( 30 years) is multiplied by 12 ). - 5. A borrower borrows on a five year loan $5,000 from a bank at 10% and will pay back the loan in five equal \$ payments (annually) at the end of each time period. How much is each equal payment, how much principal and interest is paid back, and how much interest is paid back? (Note-since the borrower repays the loan annually, the \% is divided by 1 and the exponent ( 5 years) is multiplied by 1). Also since it is a loan(payment), calculate the factor and then divide the factor into the $5,000, do not multiply the factor by the $5,000. 8 - 6. A borrower borrows on a five year loan $5,000 from a bank at 10% and will pay back the loan in ten equal \$ payments (semiannually) at the end of each time period. How much is each equal payment, how much principal and interest is paid back, and how much interest is paid back? (Note-since the borrower repays the loan semi-annually, the % is divided by 2 and the exponent ( 5 years) is multiplied by 2). Also since it is a loan(payment), calculate the factor and then divide the factor into the $5,000, do not multiply the factor by the $5,000. Calculate the following Iime Value of Money problems using information from Exercise\#9 \$10 \#11 and \$12. Use either the - Future Value, Future Value Ordinary Annuity, Future Value Annuity Due, Present Value Present Value Ordinary Annuity, or Present Value Annuits Due formulas. - 1. An investor dollar cost averages and invests $1,200 at the end of each time period (annually) in a 401K mutual fund, the return is 6%. How much is the mutual fund worth in 30 years? (Note-since the investor invests annually, the % is divided by 1 and the exponent ( 30 years) is multiplied by 1 ). - 2. An investor dollar cost averages and invests $600 at the end of each time period (semi-annually) in a 401K mutual fund, the return is 6%. How much is the mutual fund worth in 30 years? (Note-since the investor invests semi-annually, the \% is divided by 2 and the exponent ( 30 years) is multiplied by 2 ). - 3. An investor dollar cost averages and invests $300 at the end of each time period (quarterly) in a 401K mutual fund, the return is 6%. How much is the mutual fund worth in 30 years? (Note-since the investor invests quarterly, the % is divided by 4 and the exponent ( 30 years) is multiplied by 4 ). 10. An investor dollar cost averages and invests $350 at the end of each month for 33 years earning 9%. How much is the portfolio worth after 33 years? (.09/12)=7.503=(.0075) 11. An investor dollar cost averages and invests $450 at the end of each month for 42 years earning 6%. How much is the portfolio worth after 42 years? (.06/12)=5.03=(.005) 12. Two investors - Investor " A " starts investing $5,000 a year at the beginning of each year at age 31 to age 65 ( 35 years) earning 7% per year. Investor " B " invests $5,000 a year at the besinning of each year at age 22 to age 30 ( 9 years) earning 7% a year. Then lets the amount of money at age 31 compound at 7% until age 65 (35 Years). Which investor made the most amount of money? Investor " A " who invested $175,000($5,000 a year for 35 years), or Investor " B " who invested $45,000 ( $5,000 a year for 9 years). 3 - 13. Two investors - Investor " C " starts investing $400 a month at the beginning of each month at age 31 to age 70 ( 40 years) earning 8% per year. Investor " D " invests $4,800 a year at the beginning of each year at age 22 to age 33 ( 12 years) earning 8% a year. Then lets the amount of money at age 34 compound at 8% until age 70 ( 37 Years). Which investor made the most amount of money? Investor " C " who invested $192,000 ( $400 a month for 40 years), or Investor " D " who invested $57,600($4,800 a year for 12 years)
