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How long will it take him to pay off the debt

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Reference no: EM131721623

Question:

1. Joey realizes that he has charged too much on his credit card and has racked up $5,800 in debt. If he can pay $175 each month and the card charges 16 percent APR (compounded monthly), how long will it take him to pay off the debt?

Time to pay off the debt?___

2. You are looking to buy a car. You can afford $700 in monthly payments for five years. In addition to the loan, you can make a $800 down payment. If interest rates are 9.25 percent APR, what price of car can you afford? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value$ ____n/r   

3. What's the present value of a $620 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value$ _____n/r   

4. A loan is offered with monthly payments and a 14.00 percent APR. What's the loan's effective annual rate (EAR)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Effective annual rate n/r ____ % 

5. Assume that you contribute $320 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $640 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 50 years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Future value of multiple annuities$ ____n/r   

6. Phoebe realizes that she has charged too much on her credit card and has racked up $6,200 in debt. If she can pay $250 each month and the card charges 17 percent APR (compounded monthly), how long will it take her to pay off the debt? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Time to pay off the debt n/r  months

7. You wish to buy a $9,700 dining room set. The furniture store offers you a 2-year loan with an 12 percent APR. What are the monthly payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Payment$___ n/r  per month

How would the payment differ if you paid interest only? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Payment$ n/r ____   per month 

8. What annual interest rate would you need to earn if you wanted a $1,000 per month contribution to grow to $83,000 in six years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Annual interest rate n/r ___ % 

9. What is the future value of a $990 annuity payment over five years if interest rates are 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Future value$ n/r___ 

10. Given an 9 percent interest rate, compute the year 8 future value if deposits of $1,400 and $2,400 are made in years 1 and 3, respectively, and a withdrawal of $800 is made in year 4. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Future value$ n/r___

Reference no: EM131721623

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