Financial valuation-retirement plans-down-payment

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Reference no: EM1327393

1. If you deposit $15,000 today and earn 8% annual interest, how much will you have in 9 years?

2. Tiffany will receive a graduation gift of $10,000 from her parents in 3 years. If the discount rate is 7%, what is this gift worth today?

3. What is the present value of a 20-year ordinary annuity of $30,000 using a 6% discount rate?

4. You deposit $5,000 in an account that pays 8% interest per annum. How long will it take to double your money?

5. The Johnsons have $60,000 to use as a down-payment on a house, and they want to borrow $240,000 from the bank. The current mortgage interest rate is 5%. If they make equal monthly payments for 30 years, how much will the monthly payment be?

6. Tim paid $250 per month into his 401K retirement plan. After 30 years, he had accumulated $500,000. What average annual rate of interest had he earned over the 30 years?

7. Charlotte's firm had sales of $525,000 in the year ended 2000. By the year ended 2012, sales had increased to $1,200,000. What was the average annual rate of increase?

8. Alan had saved up $500,000. How much more must he save each year over the next 10 years in order to have a total of $2 million? Alan earns 5% interest, compounded annually.

9. Alicia is 22 and is just starting her first job. She plans to retire at age 62 with $1 million. If she earns 4% interest per year, how much must she save each year?

10. Alicia is 22 and is just starting her first job. She plans to retire at age 62 with $1 million. If she earns 4% interest per year, how much must she save each month?

Reference no: EM1327393

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