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You are planning for your future and want to know what the monthly payment on your student loans will be, you have $150,000 outstanding at
- You are planning for your future and want to know what the monthly payment on your student loans will be, you have $150,000 outstanding at an interest rate of 9%. You want to pay it back over a 10 year period.
- You just turned 30 and want to retire in 35 years with $1,500,000. Assuming you can get a rate of return of 6%, how much money will you need to put away each month to achieve your goal?
- If you were to invest $50,000 from you lottery winnings today, how much will it be worth in 20 years assuming a 7% rate of return?
- You have been hired by a company to help then plan for a future liability, in 5 years the company needs to pay back a shareholder loan of $100,000. How much money do they need to invest today to appreciate to $100,000 in 5 years given a 4% rate of return?
- You have found your dream home! The sales price you agreed upon is $850,000. You have 20% to use as a down payment and will finance the rest over a 30 year period at a rate of 3.75%. How much will your monthly payments be?
- You are the CFO of your company, the CEO has decided that the company has outgrown its Head Quarters. The CEO wants to move in 5 years and anticipates the move will cost $1,700,000. How much money does he need to set aside today to have the money to move assuming a rate of return of 5%?
- You decide to stop drinking coffee and set aside the cost savings for your future, you estimate you will be able to put aside $100 per month, assuming a rate of 9% how much will you have in 10 years?
This is a Time Value of Money Assignment.
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