You inherit $171,000 today. Rather than spending it, you decide to invest it. If you earn 7% per year, how much money will you have in 34 years? Round to the nearest dollar.
You are planning to lend $5,000 to someone you know. If you charge him an annual interest rate of 4.6% compounded monthly, how mucwill he owe you in 3 years? Round to the nearest dollar.
Someone you know needs a loan and she is wilting to pay you back $14,000 in exactly 9 years. If you'd like to earn 4.1% compounded annually on this loan, how much would you be willing to loan her terday? Round to the nearest dollar.
If you deposit $10,000 into an account paying 2.5% interest compounded monthly, how much interest will you earn after 6 years? Round to the nearest dollar. (
A bank advertises an annual interest rate of 2.2% compounded monthly on their savings accounts. In percentage terms, what is the effective annual rate (EAR) on the loan? Round to two decimal places
Suppose you are planning to deposit $3,000 in a bank account. You'd like your deposit to grow to $7,000 in 3 years. If interest in the account compounds weekly, what annual interest rate do you need? Answer in percentage and round to one decimal place (e.g. 5.43%→→5.4 ). Suppose you deposited $3,000 in a savings account earning 3.3% interest compounding daily. How long will it take for the balance to grow to $8,000 ? Answer in years rounded to one decimal place. (e.g,2.4315 years →2.4)
If the applicable discount rate is 3.1%, what is the present value of the following stream of cash flows? Assume that the cash flows occur at the end of theyear. Round to the nearest dollar. Cash Flow Year 1:$2,000 Cash flow Year 2:$4,000 Cash Flow Year 3:$9,000