Your mom is buying an annuity for $850,000 The insurance company anticipates sending her quarterly payments for 25 years, and the discount rate the insurance company is using is 5 How much will she receive each quarter A semi annual bond is priced at $105 It has an annual coupon rate of 5 5 and matures in 8 years The par value is $100 What is the yield to maturity Your dad wants to withdraw $2,000 at the beginning of each month throughout retirement (30 years) Just in case he is still alive, he wants to have $250,000 at the end of 30 years to live on If he earns 7 5 on his investment portfolio, how much does he need to have saved up at retirement You plan on saving $500 at the end of each month for the next 20 years You believe you will earn 8 per year You currently have nothing in the account What do you expect to have in the account in 20 years How many months does it take a $10,000 credit card balance to grow to $20,000 if the rate you pay is 18 compounded monthly The nominal interest rate is 10 and inflation is expected to be 5 , what is the real rate of interest (No need to do a timeline for this one, just show the equation and your answer) Your child is planning on attending college next year The cost is projected at $15,000 in year 1, $16,000 in year 2, 17,000 in year 3 and finally $18,000 in year 4 The first payment will be made 1 year from today How much should be in the education account today in order make these payments Assume a 4 discount rate Refer to the problem above If you have $55,000 saved up today, what is the internal rate of return Hint you are solving for the discount rate that makes $55,000 today equal to the 4 cash flows paid during years 1 4 of college

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Your mom is buying an annuity for $850,000. The insurance company anticipates sending her quarterly payments for 25 years, and the discount rate the insurance

Your mom is buying an annuity for $850,000. The insurance company anticipates sending her quarterly payments for 25 years, and the discount rate the insurance company is using is 5%. How much will she receive each quarter?
A semi-annual bond is priced at $105. It has an annual coupon rate of 5.5% and matures in 8 years. The par value is $100. What is the yield to maturity?
Your dad wants to withdraw $2,000 at the beginning of each month throughout retirement (30 years). Just in case he is still alive, he wants to have $250,000 at the end of 30 years to live on. If he earns 7.5% on his investment portfolio, how much does he need to have saved up at retirement?
You plan on saving $500 at the end of each month for the next 20 years. You believe you will earn 8% per year. You currently have nothing in the account. What do you expect to have in the account in 20 years?
How many months does it take a $10,000 credit card balance to grow to $20,000 if the rate you pay is 18% compounded monthly?
The nominal interest rate is 10% and inflation is expected to be 5%, what is the real rate of interest? (No need to do a timeline for this one, just show the equation and your answer)
Your child is planning on attending college next year. The cost is projected at $15,000 in year 1, $16,000 in year 2, 17,000 in year 3 and finally $18,000 in year 4. The first payment will be made 1 year from today. How much should be in the education account today in order make these payments? Assume a 4% discount rate.
Refer to the problem above. If you have $55,000 saved up today, what is the internal rate of return? Hint: you are solving for the discount rate that makes $55,000 today equal to the 4 cash flows paid during years 1-4 of college.