Hwk: TVM PROBLEMS $-223$

$1.$ I want to save money for retirement. would I have saved if I work for

I plan on saving $$10$k a year with an average return of $10\%.$ How much

a$.20$ years b$.30$ years c$.40$ years $2.$ I want to buy a house.

a$.$ I am saving a down payment $---$ $$3,000$ a month with a $6\%$ rate of return. How much will I have for a down payment ifIsavefor: a$.3$years $0$ b$.4$years

$3.$ Armed with a down payment, take out a loan $---30$ year fixed at $8\%$ with a monthly payment of $$4,000$ a month. a$.$ How much would they receive as a loan:

b$.$ Amortize the first three payments on the $6-$year loan. Provide:

$$ Interest expense for the first three months of the loan

$$ $$ flows for the first three months of the loan

$$ Loan Balance at end of the first three months of the loan.

$4.$ I want to buy a $$50$k car. What will my monthly payment be on a: a$.5-$yearloan@$8\%$

b$.6-$yearloan@$9\%$

c$.$ Amortize the first three payments on the $6-$year loan. Provide: $$ Interest expense for the first three months of the loan

$$ $$ flows for the first three months of the loan

$$ Loan Balance at end of the first three months of the loan.

$5.$ Three companies are selling bonds with the following cash flows.

$$ $$1,000$ at the end of year $5$ $$100$ per year for five years.

How much would each of these bonds sell for if the companies credit rating indicated they should return: a$.$ Joseph Co $---8\%$; b$.$ Kate Co $---10\%$ c$.$ Tiff Co $---12\%$