Principle of financing solving the problems You invested $5,000 in a mutual fund, and after 9 years the balance grew to $14,650 Assuming monthly compounding, what APR must you have earned during those years 2) You plan to begin contributing each pay period to your employers 401k plan at the beginning of the month in which you turn 25 You will be paid twice a month Your salary is $52,800 and your employer will match your contribution up to 4 of your salary You can contribute more, but your employer stops at 4 You decide to contribute 6 of your salary, making contributions each pay period that include both your and your employers portions How much will you have saved for retirement if you earn 6 4 over time and you retire at age 65 Assume the same salary over the years You deposit $12,000 in a savings account, and it grew to $24,900 If you earned only 3 4 , how many years did it take to reach that final balance Assume quarterly compounding Round to the nearest year When you retire you expect to have savings of $600,000 and to receive Social Security each month in the amount of $2,100 If you expect to live 30 years after retirement, and can earn 3 5 on your savings during retirement, what will your annual retirement income be You decide to buy a new car The car you want costs $28,600 You will put 12 down on the car and finance the rest The dealership, after viewing your credit report and FICO score, decide to offer you a 5 year, 6 2 loan requiring monthly payments that begin one month from the date of sale What will be the amount of the monthly payment youll make How much would you need to save each month (starting one month from today) in order to have $750,000 in your IRA account when you retire 35 years from today Assume an APR of 6 00 You win the lottery, and the NY Lottery says that the total prize is $5,400,000 but thats $270,000 per year (starting immediately) for 20 years You have the option of receiving a lump sum payment today of $3,650,000 If you use a discount rate of 4 4 , how much will you gain by making the correct choice You can afford a monthly payment for a new car of $725 The bank will offer you a loan for 5 years, with monthly payments, at an APR of 4 8 Given these facts, what is the maximum amount you can afford to pay for a new car

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Principle of financing solving the problems: You invested $5,000 in a mutual fund, and after 9 years the balance grew to $14,650. Assuming monthly compounding,

Principle of financing

solving the problems:

You invested $5,000 in a mutual fund, and after 9 years the balance grew to $14,650. Assuming monthly compounding, what APR must you have earned during those years?
2) You plan to begin contributing each pay period to your employers 401k plan at the beginning of the month in which you turn 25. You will be paid twice a month. Your salary is $52,800 and your employer will match your contribution up to 4% of your salary. You can contribute more, but your employer stops at 4%. You decide to contribute 6% of your salary, making contributions each pay period that include both your and your employers portions. How much will you have saved for retirement if you earn 6.4% over time and you retire at age 65? Assume the same salary over the years.
You deposit $12,000 in a savings account, and it grew to $24,900. If you earned only 3.4%, how many years did it take to reach that final balance? Assume quarterly compounding. Round to the nearest year
When you retire you expect to have savings of $600,000 and to receive Social Security each month in the amount of $2,100. If you expect to live 30 years after retirement, and can earn 3.5% on your savings during retirement, what will your annual retirement income be?
You decide to buy a new car. The car you want costs $28,600. You will put 12% down on the car and finance the rest. The dealership, after viewing your credit report and FICO score, decide to offer you a 5-year, 6.2% loan requiring monthly payments that begin one month from the date of sale. What will be the amount of the monthly payment youll make?
How much would you need to save each month (starting one month from today) in order to have $750,000 in your IRA account when you retire 35 years from today? Assume an APR of 6.00%.
You win the lottery, and the NY Lottery says that the total prize is $5,400,000 but thats $270,000 per year (starting immediately) for 20 years. You have the option of receiving a lump sum payment today of $3,650,000. If you use a discount rate of 4.4%, how much will you gain by making the correct choice?
You can afford a monthly payment for a new car of $725. The bank will offer you a loan for 5 years, with monthly payments, at an APR of 4.8%. Given these facts, what is the maximum amount you can afford to pay for a new car?