1. You owe your parents $19,000 (in present day dollars) and want to repay them in equal amounts the first to occur in 3 years from today and the other in 6 years from today. If the interest rate is 7.9% per annum compounding monthly, what will be the amount of each repayment?
2. An advertised investment product promises to pay $507 per month for 83 months commencing in 1 month from today. If the investment earns 4.5% p.a compounding monthly, how much will the investment product cost today?
3. A sinking fund is set up so that level annual payments will accumulate, ati%p.a compounding annually, to $50,000 in 10 years. Assuming the payments made are at each year-end, after exactly 5 years the sinking fund will be:
4. Suppose you will receive $14,000 in 11 months and another $14,000 in 24 months. If the discount rate is 5% per annum (compounding monthly) for the first 14 months, and 10% per annum (compounding monthly) for the next 10 months, what single amount received today would be equal to the two proposed payments?
5. You plan to accumulate $20,000 for a car in 3 years' time. To you will make 12 level deposits (quarterly) with the first deposit today. If you earn 12.1% per annum compounding quarterly, what regular deposit will be needed?
6. You invest $7,000 and earn $894 over 21 months. What nominal rate of annual interest (compounding monthly) did you earn?