Problem 5-1 Future Value (LG5-1)

Compute the future value in year 7 of a $2,800 deposit in year 1, and another $2,300 deposit at the end of year 4 using a 8 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Future value =

Problem 5-3 Future Value of an Annuity (LG5-2)

What is the future value of a $860 annuity payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Future value =

Problem 5-7 Present Value of an Annuity (LG5-4)

What's the present value of a $960 annuity payment over five years if interest rates are 9 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Present value =

Problem 5-15 Effective Annual Rate (LG5-7)

A loan is offered with monthly payments and a 9.50 percent APR. Whats the loans effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Effective annual rate = %

Problem 5-17 Future Value (LG5-1)

Given a 5 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,950, $2,150, $2,150, and $2,450, respectively. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Future value =

Problem 5-19 Future Value of Multiple Annuities (LG5-2)

Assume that you contribute $370 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $740 per month for another 25 years. Given a 9.0 percent interest rate, what is the value of your retirement plan after the 50 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Future Value of Multiple Annuities =

Problem 5-25 Present Value (LG5-4)

You are looking to buy a car. You can afford $440 in monthly payments for four years. In addition to the loan, you can make a $1,100 down payment. If interest rates are 7.25 percent APR, what price of car can you afford (loan plus down payment)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Present value =

Problem 5-39 Loan Payments (LG5-9)

You wish to buy a $26,500 car. The dealer offers you a 4-year loan with a 10.8 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Payment = per month

How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Payment = per month

Problem 5-41 Number of Annuity Payments (LG5-9)

Joey realizes that he has charged too much on his credit card and has racked up $5,500 in debt. If he can pay $175 each month and the card charges 15 percent APR (compounded monthly), how long will it take him to pay off the debt? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Time to pay off the debt = months.

Problem 5-51 Investing for Retirement (LG5-4, LG5-9)

Monica has decided that she wants to build enough retirement wealth that, if invested at 8 percent per year, will provide her with $5,300 of monthly income for 25 years. To date, she has saved nothing, but she still has 30 years until she retires. How much money does she need to contribute per month to reach her goal? First compute how much money she will need at retirement, then compute the monthly contribution to reach that goal.

Contribution per month =