WILL THUMBS UP FOR CORRECT ANSWER! :)

1) John plans to buy her first home in 4 years. Ideally, she wants to have $6,000 for her down payment. How much does she need to set aside today to achieve her goal if she earns 2% APR with monthly compounding on her savings?

Amount set aside = $_________

2) Your friend wants to open a barber shop. She expects to earn the following cash flows.

Time	1	2	3	4	5
Cash flow	4,000	6,000	3,000	5,000	3,000

If the appropriate discount rate is 14%, what is the maximum amount that she should invest initially?

The maximum amount for investment = $_________

3) Sally decides to buy a Mercedes that costs $58,000. He will finance the car with the car dealer, which requires equal payments. The financing term is: 2.4% APR with monthly compounding for 4 years. What are the monthly payments that Sally has to pay?

Monthly payments = $__________

4) Your friend just came back from his vacation in Kenya. He has financed his trip with a travel agency. The agency requires him to pay $400 per month, starting today, for the next 3 years. How much did the trip cost if the appropriate discount rate is 6% APR with monthly compounding?

The trip cost = $__________

5) Australian Government plans to issue bonds which pay a coupon of GBP50 per year indefinitely. If you require 5% return, how much should you pay for the bonds? Note that the bond price is the present value of future cash flows.

Price that you should pay per bond = GBP__________