Amy  has a student loan debt of $39,400. Amy does not plan to take any more debt, but will not be able to pay off this debt for 3 years. The debt is accruing interest at 3% per year. How much debt will Amy have in 3 years when she begins to pay it off?

Amy  wants to have $1,438,335 saved for retirement. Amy plans to retire in 37 years. How much would Amy need to save today to meet her retirement goals if her investment is expected to grow at 7% in the market?

A friend offers Amy an investment. They ask Amy to put in $17,486 today and promise to pay her $54,581 in 2 years. What is the annual rate of return Amy's friend is offering on this investment?

A project is expected to cost $114,233 up front, and then return $23,776 in year 1, $44,511 in year 2, and $38,756 in year 3. If the company demands a 7% return from their projects, what is the net present value of this project? (Answers should be to the nearest cent. If your answer is negative please write it as "$-100.03" with the dollar sign before the negative so blackboard can read it correctly.)

How much would $5,000 due in 25 years be worth today if the discount rate were 5.5%?

Amy deposited $1,125 today in a savings account that pays 6% interest, compounded annually. How much will Amy's account be worth at the end of 25 years?

Answer rating: 100% (QA)

To calculate the amount of debt that Amy will have in 3 years we need to use the formula for compoun... View the full answer