Question

1. You are currently considering buying a new car. The price is $ 15,000 and you...

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?

Homework Answers

Answer #1

1 Price Down Loan 13000 10% Rate Period 1 PMT 3429.37 10 2 Loan 10000 Period 2504.56 12 PMT 13 8.00% Rate 3 Amount 16 10% Rate 1000000 18 Period 12.63 19 20 4 PMT Year Rate EAR 12.55% 6.09% 24 Semi rate 25 2451.73 PV 26

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