Question

1. You are currently considering buying a new car. The
price is $ 15,000 and you have $ 2,000 for the soon. If you can
negotiate a rate of 10% and want to pay for the car in a period of
five years. How much would the payment be?

2. Ruiz Motor is financing a new truck with a loan of $ 10,000 to
be repaid in five installments of $ 2,504.56 to be made at the end
of the period. What annual interest rate will the company
pay?

3. Jill has $ 300,000 in a bank account. The account pays 10
percent annual interest. Assuming that Jill does not make
additional contributions to the account, how many years will it
take for Jill to have $ 1,000,000 in the account?

4. You have been offered an investment that pays $ 500 at the end
of every six months for the next 3 years. The interest rate n is 12
percent, quarterly. What is the present value of the
investment?

5. Steven has just deposited $ 10,000 in a bank account that
has

a 12 percent monthly interest rate.
How much will there be in the

account within three years?

6. Suppose you borrow $ 10,000 for four years at 18

interest cent. How much will the monthly payment of the

loan?

7. You want to withdraw $ 3,000 annually for three years, if the
rate of

interest is 8
percent biannually, how much was the

initial
deposit?

.

8. Bill plans to deposit $ 200
in a bank account. The bank

offers
you an 8% monthly interest. How much will Bill have in the

account at the end of 2 and a half years?

9. You deposit $ 2,500
annually for three years, if the rate of

interest is 8 percent biannually how
much will there be in the

account at the end of three
years?

10. The Smith family plans to buy a new house within

three years for $ 200,000. They will
take a mortgage loan

to 30 years at the time of purchase.
The lenders

Mortgages generally base the
analysis of the loan on

the gross income of the family,
considering 25% of the

entry to the application of the loan
payment. The family

Smith anticipates that the family
income will be

approximately $ 48,000 at the time
of purchase of the house.

The mortgage interest rate is
expected to be close to 9%

at that moment. The loan will not
provide enough

cash for the purchase of the house.
The family will need

have enough cash saved for the early
payment to

be able to cover the difference of
the purchase. They have a

bank account that pays 6% computed
quarterly in

which they have already saved $
10,000. They plan

make quarterly deposits from now
until the moment of

the purchase to save the remaining.
How much should each be

Deposit?

Answer #1

5. Steven has just deposited $ 10,000 in a bank
account that has
a 12 percent monthly interest rate.
How much will there be in the
account within three years?
6. Suppose you borrow $ 10,000 for four years at 18
interest cent. How much will the monthly payment of the
loan?
7. You want to withdraw $ 3,000 annually for three years, if the
rate of
interest is 8
percent biannually, how...

You have deposited $10,000 in a bank earning interest at 7% p.a.
compounded quarterly for four years and five months. At that time,
the interest rate changes to 6% p.a. compounded monthly. What is
the value of the deposit three years after the change in the rate
of interest?
What nominal annual rate compounded quarterly is equivalent to
7.5% p.a. compounded monthly?
You have decided to deposit $500 in the Montreal bank at the end
of each quarter for seven...

1. If you deposit $15,000 per year for 23 years (each deposit is
made at the end of each year) in an account that pays an annual
interest rate of 12%, what will your account be worth at the end of
23 years?
2.
You plan to buy a car that has a total "drive-out" cost of $21,100.
You will make a down payment of $2,321. The remainder of the car's
cost will be financed over a period of 4...

1. For the next 6 years, you pan to make equal quarterly
deposits of $600.00 into an account paying 8% compounded quarterly.
How much will be the total you have at the end of the time?
2. How much money will you have to deposit now if you wish to
have $5,000 at the end of 8 years. Interest is to be at the rate of
6% compounded semiannually?
3. In the California “Million Dollar Lottery” a winner is paid...

You want to buy your dream house. You currently have $15,000
saved and you need to have a 10% down payment plus an additional 5%
of the loan amount for closing costs. Assume the cost of the house
is $956,216. You can earn 7.5% per year in a savings account per
year. How long will it be before you have enough money for the down
payment and closing costs?
Given your current credit, you secure a 15-year fixed rate
mortgage...

1) You plan to deposit $2000 each year into an account for the
next 5 years. The discount rate is 12% for the next 3 years and 15%
after that. What is the value today of your 5 deposits of $2000
each?
2) An investment pays no cash flows for the next 3 years. After
three years, the investment pays $1000 per year for 10 years. After
that, the investment pays $2000 per year forever. The appropriate
discount rate is...

a. You are considering an investment of $55,000 in an account
that pays 8.3 percent compound interest. How much less interest
would you earn in a 3-year period if the interest was simple?
(10%) b. Your firm wants to borrow $250.000 for 10 years from
the bank in order to pursue a big
investment opportunity. The bank will lend the money but it
requires an upfront fee of $ 10,000. The interest is 6.3%. How much
will you be paying...

You are planning to buy a house worth $500,000 today. You plan
to live there for 15 years and then sell it. Suppose you have
$100,000 savings for the down payment. There are two financing
options: a 15-year fixed-rate mortgage (4.00% APR) and a 30-year
fixed-rate mortgage (5.00% APR). The benefit of borrowing a 30-year
loan is that the monthly payment is lower. But since you only plan
to hold the house for 15 years, when you sell the house...

Suppose on January 1 you deposit $1000 in an account that pays
a nominal, or quoted, interest rate of 12%, with interest added
(compounded) daily. How much will you have in your account on
October 1, or 9 months later?
You want to buy a car, and a local bank will lend you $10,000.
The loan would be fully amortized over 6 years (72 months), and the
nominal interest rate would be 10%, with interest paid monthly.
What is the...

Please show your steps for each part of the
problem, and if a calculator was used, list the
button combination pressed in order to arrive at
your answer!
a. Jack and Jill are twins and at 20 years of
age they both opened separate investment accounts with an on online
broker. Jack started investing $50 a month starting from today.
Jill will save $55 a month starting at the end of the month. if
this investment account gives them 8%...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 21 minutes ago

asked 30 minutes ago

asked 33 minutes ago

asked 49 minutes ago

asked 50 minutes ago

asked 51 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago