1- Find the capital necessary to obtain $1200 in 6 years at 12% compounded monthly. Principal =...
Question:
Principal = $
2- In 3 years Harry and Sally would like to have $20000 for a down payment on a house. How much should they deposit each month into an account paying 5% compounded monthly?
Answer = $
3- Find the amount after 7 years if $500 is invested at 10% compounded:
a) Annually
Amount = $
b) Semiannually
Amount= $
c) Quarterly
Amount= $
d) Monthly
Amount= $
4- Stereo Inc. sells a stereo system for $500 down and monthly payments of $30 for the next 3 years. If the interest rate is 2.75% per month, find:
a) The cost of the stereo.
Answer = $
Hint: Make sure you are using the MONTHLY interest rate, meaning 2.75 % is APR/12.
b) The total amount of interest paid.
Answer = $
5-What annual rate of interest compounded annually is required to double an investment in 9 years?
Rate = %
6- Find the amount of the annuity if the deposit is $1000 quarterly for 3 years at 3% compounded quarterly.
Amount = $
7- Mark deposits $1100 each month in a retirement plan paying 3% compounded monthly. How much will he have in the account after 10 years?
Answer = $
8- Find the yearly payment needed to pay off a loan of $29000 amortized at 9% compounded yearly for 16 years.
yearly payment = $
9-Nicholas invested $1800 per year in an IRA each year for 10 years earning 11% compounded yearly.
At the end of 10 years he ceased the IRA payments, but continued to invest his accumulated amount at 12% compounded monthly for the next 3 years.
a) What was the value of his IRA at the end of 10 years?
Answer = $