Please Show Work!

A) Which of the following loans functions in this way the borrower makes fixed payments of the same amount for 7 years and then the entire unpaid balance was due.

Fully Amortizing, Balloon, Interest Only, or Pure Discount.

B) Huggins Co. has identified an investment project with the following cash flows (year 1 = 680, year 2 = 810, year 3 = 940, year 4 = 1,150). If the discount rate is 10%, what is the present value

C) Investment X offers to pay you $4,700 per year for eight years, whereas Investment Y offers to pay you $6,700 per year for fives years. Which one has the higher present value at a 5% discount rate? X =30,377 Y= 29,007

D) An investment offers $5,500 per year for 15 years, with the first payment occurring one year from now. If the required rate of return is 6%, what is the present value of the investment? PV = 53,417.37

E) An investment offers $5,500 per year forever, with the first payment occurring one year from now. If the required rate of return is 6% What is the value of the investment? What if the $5,500 payment started in 6 years. What is it worth today?

PV = 91,666.67

PV = 68,498.67

F) If you put up $38,000 today in exchange for a 5.8%, 15-year annuity, what will the annual cashflow be?

PMT = 3,861.61

G) If you deposit $4,000 at the end of each of the next 20 years into an account paying 9.7% interest. How much will you have in 20 years?

FV = 221,439.14

H) Dinero bank offers you a 5 year, $50,000 loan, at 7.5% interest. What is the annual payment?

PMT = 12,358.23

I) You are planning to make monthly deposits of $450 into a retirement account that pays 10% compounded monthly. If your first deposit will be one month from now, how large will your retirement account be in 30 years?

FV = 1,017,219.56

J)

Beginning 3 months from now, you want to be able to withdraw $2,200 each quarter from your bank account to cover college expenses over the next four years. If the account pays .43 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years?

Answer = $33,945 (convert 4 years into 16 quarters)