Solve by using the proper equivalence expressions (such as F = P(F/P, i, n)) and the tables of equivalence factors. Use factors from your excel spreadsheet where necessary.

1.You want to buy a house in 8 years. You will put money into an investment program which will pay you 5% annual interest (no monthly compounding). You invest $7000 today, and will invest another $7000 at the end of each year for the next 4 years. If you need a 15% down payment on your house, what is the maximum sales price of the house? (neglect taxes, fees, etc.)

2.A company needs to buy a building in 4 years, and must fund the down payment from its profits. The purchase will cost $400,000, of which the company can finance (borrow) $300,000 at 7%. If the company must make the purchase in 4 years and can receive 12% APR on its savings, compounded monthly, how much must the company save each month to have the required down payment in 4 years?

3.ou invest in a scheme today that will pay you $4000 at the end of each of the next five years, plus a lump sum payment of $40,000 when the five years are up. If you require a 12% MARR, compounded monthly, what is the most you should invest today to receive these future cash flows?