q.1

Your parents will retire in 14 years. They currently have $300,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?

q.2 You want to buy a car, and a local bank will lend you $10,000. The loan would be fully amortized over 4 years (48 months), and the nominal interest rate would be 12%, with interest paid monthly. a)What is the monthly loan payment? b)What is the loan's EFF%?

q.3 An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $250 at the end of Year 5, and $350 at the end of Year 6. If other investments of equal risk earn 9% annually, what is this investment's present value? Its future value?

Present value: $

Future value: $