1. Solve the following unknown variable. (a) n = 300 (b) PVdue = $20, 000 (c)...

 

 

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1. Solve the following unknown variable. (a) n = 300 (b) PVdue = $20, 000 (c) 50 i = 0.015 i = 0.0075 i = 0.0125 PMT = $400 PMT = $300 FVåue = $10,000 FV = ? n = ? РМТ —? 2. Describe the following in your own words. (a) The difference between the n value in the regular compound interest formulas (ex. FV = PV(1+i)") and the annuity formulas (ex. FV = PMT |(1+5)"-1 ). (b) The difference between a general and ordinary annuity. Specifically, give an example of when you need to calculate the iz value. 3. Instead of your daily trip to the coffee shop, you will instead deposit $120 every month into your savings account earning 1.2% compounded monthly. (a) How much will you have saved if you start saving one month from today and continue for 5 years? (b) How much interest will you gain in total over the 5 years? (Hint: How much did you deposit in total?) 4. You decide to finance a car that costs $15,000 and has a financing rate of 3% compounded annually. How long will this financing loan be if the monthly payments are $325 and you start payments one month from today? 1. Solve the following unknown variable. (a) n = 300 (b) PVdue = $20, 000 (c) 50 i = 0.015 i = 0.0075 i = 0.0125 PMT = $400 PMT = $300 FVåue = $10,000 FV = ? n = ? РМТ —? 2. Describe the following in your own words. (a) The difference between the n value in the regular compound interest formulas (ex. FV = PV(1+i)") and the annuity formulas (ex. FV = PMT |(1+5)"-1 ). (b) The difference between a general and ordinary annuity. Specifically, give an example of when you need to calculate the iz value. 3. Instead of your daily trip to the coffee shop, you will instead deposit $120 every month into your savings account earning 1.2% compounded monthly. (a) How much will you have saved if you start saving one month from today and continue for 5 years? (b) How much interest will you gain in total over the 5 years? (Hint: How much did you deposit in total?) 4. You decide to finance a car that costs $15,000 and has a financing rate of 3% compounded annually. How long will this financing loan be if the monthly payments are $325 and you start payments one month from today?