Financial planners estimate you will require an income of $2500 per month to retire. You dial 1800 psychic and discover you will live another 15 years. How much money will you need to retire if your first withdrawal will be in one month?(interest is 9% compounded monthly)


You have just purchased a new house for $250,000. You can afford to pay $2600 per month on your mortgage. How long will it take you to pay off your house if interest is calculated at 12% monthly?


You purchase a new machine for your bottling plant. The machine will result in savings of $4500 per quarter starting at the end of the next quarter. If the machine costs $100,000 and your loan charges interest at J4=12%, how long will it take you to recover the value of the machine?


Your new car loan has payments of 499 per month for 5 years to pay for a $25,000 Mercuary Stable. What rate of interest is being charged? What is the effective rate? What is the cost of financing?


5.   You deposit $1000 at the end of each quarter into an account that pays 10% compounded quarterly.

a.                 Find the future value in one year.

b.                 You make the first deposit now, at the beginning of the year. How much money will have at the end of the year?

c.                  How much of that money is interest?

6.  You begin a savings plan. At the beginning of each month you deposit $250 into an account that pays 9% compounded monthly. How much money will you have after 5 years?