QUESTION 1

1. You plan on purchasing a laptop from regular deposits of $100 at the end of every month for a year. If interest is earned at a rate of 7.6% compounded quarterly. What is the value of i that you will use in the future value annuity formula? Write your answer as a percentage rounded to three decimal places.

QUESTION 2

1. A loan of $1,465 is to be paid off in 12 equal quarterly payments with an interest rate of 2.4% compounded quarterly. What are the payments if they start today?

QUESTION 3

1. Deposits of $560 at the end of every 3 months earn 2% compounded quarterly. How much will be saved after two years of quarterly payments?

QUESTION 4

1. A mortgage of $300,000 has an interest rate of 2% compounded monthly. How many monthly payments of $627.5 will need to be made if the payments start one month from today? Round your answer up to the nearest whole number.

QUESTION 5

1. A company sets up a perpetuity to pay for office supplies. If the perpetuity earns 2.5% compounded quarterly and there is initially $295,929, how much can they spend at the end of each quarter on supplies?

QUESTION 6

1. Your boss wants to set up an account that will be used to pay the bonuses of employees at the end of each year (assume this will continue perpetually). The bonuses sum to $19,622 and the account can earn 2% compounded annually. How much needs to be in the account when it is set up?

QUESTION 7

1. A loan of $577 is to be paid off, but payments will not be able to commence until one year from now. At that time, payments will begin immediately and be paid off with 6 monthly payments. If interest is accrued at 6% compounded monthly, how much are the payments?

QUESTION 8

1. Every month, you will be depositing $100 into an account for a year starting today. If you ended up having $1300 after the 12 deposits, what periodic interest rate was earned? Write your answer as a percentage rounded to 3 decimal places.