PLEASE ANSWER ALL 19 QUESTIONS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

1) Calculate the future value of an annuity, with case A being an ordinary annuity and case B being an annuity due.

Case	Annuity	Interest Rate %	Deposit Period (yrs)	Future Value
A	13,000	5	9
B	8,000	7	13

2) Sabrina deposits $500 in an account at the end of each year for 3 years. If the account pays 4% interest annually, how much money will be in Sabrina's account at the end of 3 years? How much money will be in Sabrina's account at the end of 3 years?

3) For each of the following cases, calculate the present value of the annuity, assuming the annuity cash flows occur at the end of each year.

Annuity	Interest Rate %	Period (yrs)	Present Value
31,000	18	7
18,000	6	16

4) Ethan sells his car to Seamus. Seamus promises to pay Ethan $850 at the end of each year for 10 years. What is the present value of Seamus's promised payments if the interest rate is 10%?

5) You want to compare two separate retirement savingsscenarios: (A) and (B). In scenario (A) you start immediately, contribute for a few years, but then stop contributing. However, you leave the accumulated savings to compound until retirement. In scenario (B) you start later (after the end of savings in scenario A) and contribute all the way to retirement. Calculate the accumulated amount of savings at retirement for the two scenarios.

Scenario	Annual Payment	Payment Period	Total Number of Payments	Length of Investment	Interest Rate
A	9,000	End of years 1 to 12	12	30 years	9%
B	9,000	End of years 13 to 30	18	30 years	9%

6) You've graduated from college and landed a good job. You want to replace your car, but don't want to take out a car loan. Instead, you decide to invest $400 per month in the stock market and hope to earn 10%. If the market performs as you're hoping, how many years will it take to accumulate $40,000? Ignore taxes.

7) Suppose your credit card balance is $15,000. The minimum payment is $357, and the annual percentage rate is19.3%.

a. If you make a constant monthly payment of $357, how long will it take you to pay off the credit card balance?

b. How much interest will you pay if you elect to make the minimum payment?

8) Starting one month from now, you need to withdraw $170 per month from your bank account to help cover the costs of your university education. You will continue the monthly withdrawals for the next four years. If the account pays 0.4% interest per month, how much money must you have in your bank account today to support your future needs?

9) The preferred stock of Marble Comics pays annual dividends of$3 in perpetuity (starting in one year). If you buy a preferred share for $22.36 and hold it in perpetuity, then what is your annual rate of return? Express your answer as a percentage rounded to 2 places. i.e. 12.3456%=12.35%.

10) Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 10 end-of-year payments starting one year from now. The first two payments would be $26,000 and $23,000 in one and two years respectively, and then $17,000 per year after that for 8 years. If Wally requires a return of 10.1%, what is the present value of this stream of cash flows?

11) In the following case, the mixed end-of-period cash flow stream has an annuity embedded within it. Calculate the present value of the cash flow stream, assuming a 7% discount rate.

Year	Cash Flow
1	7,000
2	4,000
3	6,000
4	6,000
5	6,000
6	6,000
7	9,000

12) You borrow $250,000 to buy a house over a 20-year term. The loan is structured as an amortized loan with annual payments and an interest rate of 8%. Complete the cells in the amortizationschedule, below.

Year	Payment	Interest in Payment	Principal Repaid	Principal owing at end of the year
1
2

13) Determine the equal, annual, end-of-year payment required over the life of the following loans to repay them fully during the stated term.

Loan	Principal	Interest Rate	Term of Loan	Annual Payment
A	10,000	8	16
B	20,000	17	7

14) You borrowed $300,000 exactly 3 years ago. The loan is structured as an amortized loan. The interest rate is 7% and you make quarterly (end-of-quarter) payments of $6,374.64. The loan is amortized over 25 years. How much principal have you paid over the first 3 years?

15) A Hummer H3 sells for $96,000 tax included. GMAC lends money at the rate of 9.6% APR. If you buy the car and borrow through GMAC, then what are the monthly (end-of-month) payments for a 7-year term? What is the amount of the monthlypayment?

16) The Shelby Cobra retails for $59,058 (all taxes included). What are the monthly loan payments for the car if you make a down payment of $4,198, the term is 4 years and the APR is 2%? (Car loan payments are made at the end of each month) What is the amount of the monthly payment?

17) Determine the present value of each of the following perpetuities.

Perpetuities	Annual Amount	Discount Rate	Present Value
A	20,000	7
B	70,000	12
C	60,000	19

18) Jed wants to borrow $1,000 from you. He is proposing to repay you with three annual payments of $311.60 starting immediately. In addition, he will make a final lump-sum payment of $160 three years from today. What rate of return are you earning on the loan?

19) Uriah Heep celebrated his 18th birthday by opening a savings account at the Thames River Bank and depositing $1,500. He continued to deposit the same amount on every subsequent birthday until he was 26 years old. After depositing $1,500 on his 26th birthday Uriah decided to abandon his savings plan. He never savedagain, but he left the accumulated savings in the bank account. The bank paid an interest rate of 13%. When Uriah turned 65, he withdrew the money from the bank. What was the amount of hiswithdrawal? What was the amount of Uriah's withdrawal when he turned 65?