| | You wish to buy a $9,000 dining room set. The furniture store offers you a 3-year loan with an 10 percent APR. What are the monthly payments?How would the payment differ if you paid interest only? | Monica has decided that she wants to build enough retirement wealth that, if invested at 8 percent per year, will provide her with $4,100 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? | | | | Rachel purchased a $23,000 car three years ago using a 9 percent, 5-year loan. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan. | | What is the minimum price Rachel would need to receive for her car? Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, and $1,850. | | Assume that you contribute $320 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $640 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 50 years? | If the future value of an ordinary, 6-year annuity is $5,900 and interest rates are 7.5 percent, what is the future value of the same annuity due? | If the present value of an ordinary, 8-year annuity is $6,100 and interest rates are 8.0 percent, whats the present value of the same annuity due? What's the present value, when interest rates are 8.5 percent, of a $135 payment made every year forever? | What's the present value of a $910 annuity payment over four years if interest rates are 8 percent? | Compute the present value of a $3,800 deposit in year 1 and another $3,300 deposit at the end of year 3 if interest rates are 10 percent. | What is the future value of a $920 annuity payment over six years if interest rates are 10 percent? | Compute the future value in year 8 of a $2,300 deposit in year 1 and another $1,800 deposit at the end of year 3 using a 10 percent interest rate | How long will it take $2,000 to reach $4,400 when it grows at 11 percent per year? | | | | | | | | | | | |
