Please solve and show the steps as to how you obtained the answer.

1 How much must be saved at the end of each year in order to save $100,000 over a 12 year investment period?

Assume that you can earn 8.5% per year.

2 You are analyzing an investment that requires you to pay $125,000 upfront. In return, you will receive $14,560 every year for 27 years.

What rate of return are you earning on this investment?

3 Currently, the US Stock Market (as measured by the S&P 500) has a historical rate of return on 8.5% per year. If inflation this year runs at 2.1% per year, what is your real (inflation-adjusted) return?

4 MDP Bank has a savings account that pays 2.2% APR, compounded quarterly.

North East Bank has another saving account that pays 2.19%, but the interest is compounded daily.

Which savings account do you prefer, and why?

5 Five years ago, Delta Electronics had total annual revenue of $4,500,000. This year, its total annual revenue was $12,300,000.

What was the Compound Annual Growth Rate (CAGR) in Delta's Annual Revenues?

6 Omega Plumbing is considering installing a new order entry system. The system costs $50,000, but will save Omega $5,000 per year for 10 years.

Omega can invest its cash in a bank CD at 2.0%.

Should it do the project?

7 You expect toearn a return of 6.5% per year in a mutual fund. If you start with an initial investment of $10,000, and make an additional contribution of $600 every year for 21 years, how much will you have at the end 21 years?

8 You want to buy a house, but the most you can afford in monthly payments is $950 per month. Your bank has a 30-year monthly payment mortgage at a rate of 4.5%.

What is the maximum mortgage you can take out ?

9 You start a new job when you are 21 years old. You plan on working until you are 67 years old.

You have a goal of $2,000,000 in retirement savings. If you can earn 9.0% on your investments in an Individual Retirement Account, how much do you have to save each month?

10 You take out a mortgage for $400,000. The interest rate is 4.25% APR, and the mortgage is for 20 years.

How much is your monthly payment?

11 You take out a mortgage for $400,000. The interest rate is 4.25% APR, and the mortgage is for 20 years.

If you want to pay off the mortgage early, after 10 years, how much do you still owe on the mortgage?

12 You are considering an investment that pays you the following:

$60.00, every six months, for 12 years.

$1,000 at the end of 12 years.

If you can earn 5% on your investments, what would you be willing to pay to make this investment?

13 You sign a contract to play professional football and are guaranteed to receive the following payments:

Year 1$2,500,000

Year 2$2,000,000

Year 3$1,500,000

If you can invest at a annual rate of 8.1%, what is the current value of your contract?

14 You hire a well known personal injury law firm to settle your accident claim.

After some negotiations, the insurance company offers you the following.

$500,000 cash immediately

$100,000 per year for the next five years.

$50,000 per year for years 6, 7, 8, 9 and 10.

What is the current value of the settlement, if you can earn 2.5% in a bank deposit account?

15 You plan to retire in 40 years, and expect to live for 30 years in retirement. You want to have $100,000 per year to live on in retirement.

If you can earn 5.5% per year on invested funds during your retirement, how much do you need to have saved?

16 Alpha Corporation invests $6.2 million in a new business project. The project is supposed to generate returns of $1.8 million per year for 5 years.

What Return on Investment (ROI) is Alpha expecting to earn on this investment?

17 You are meeting with a financial planner to set up a retirement plan.

You currently are earning $52,000 per year, and expect to receive salary increases of 3% annualy.

You plan on retiring in 30 years, and want to be able to retire at 80% of your last year salary.

How much will you need every year for your retirement?

18 You have just graduated from university.You have a total student loan debt of $29,000, payable every month for 10 years, at an interest rate of 6.2%.

After doing some research, you find that you could refinance your loan at a rate of 5.1%, payable monthly, over 10 years. However, there is a $1,500 fee to do the refinancing.

Is it worth it to do the refinancing?

19 You buy a new car for $32,000. You finance the car with a 60-month, 6.5% APR auto loan.

If you fully pay of the loan by making the 60 payments, how much did you pay in interest?

20 A preferred stock is issued that pays a fixed quarterly dividend of $3.50. If the expected return on this investmentis 10.20%, what is the value of this preferred stock?