Question
Show how to use HP10bII+ financial calculator to solve these questions 1. Calculate the number of years it will take for X to save $50,000
Show how to use HP10bII+ financial calculator to solve these questions
1. Calculate the number of years it will take for X to save $50,000 assuming she can invest $1000 annually as an annuity due. The market interest rate is 6%.
2. What is the yield to maturity on a bond that has a price of $1,600 and pays $100 interest annually for 6 years at the end of which it repays the principal of $1000? Is the bond selling at premium, at par, or at discount? How can you tell?
3. You recently got promoted at your job. You have since decided to buy your dream car and expect that it will cost you $94,000 seven years from today. After budgeting your expenses, you decide that you can save $9,000 per year at the end of each year. Given a market interest rate of 13%, will you be able to purchase your car at the end of year 7? Would you be able to afford it one year later?
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