Reference no: EM132833191
Problem 1. José López has $15,000 on a 6-year certificate of deposit (CD) that pays a guaranteed annual fee of 4%. Prepare timeline that shows when cash flows will occur.
Problem 2. Oliver Lopez deposits $12,000 into a bank account that pays 7% annual interest. Calculates the account balance after 5 years.
Problem 3. Carmen Hernandez has saved $8,000 for a car deposit. The highest monthly fee you can afford is $455. The loan will have an APR of 11% payable at the end of each month. Determine which car is the most costs or what you can purchase if you buy it on credit payable at 60 months.
Problem 4. Determines the present value of a financial instrument that pays $18,500 over 10 years if similar risk instruments pay 6% per annum.
Problem 5. Calculates the future value (FV) of an investment of $5,000 at an interest rate of 10% to 7 years.
Problem 6. Determines the interest rate you will pays, if you approve a $112,000 loan with annual payments of $15,000 to 8 years.