Reference no: EM133145401

Questions -

Q1. Columbia Bank & Trust has just given you a $120,000 term loan to pay for a new concrete mixer. The loan requires equal monthly payments for 5 years. If the loan provides the bank with a 8 percent annual return compounded monthly, what will be your monthly payments?

Q2. You want to purchase a boat that costs $58,000. You want to finance as much of the purchase as possible with a 5-year bank loan at 9% annually compounded monthly, but can only afford loan payments of $750 per month. How much will you need as a down payment to buy the boat?

Q3. Eric has $15,000 today saved up for the future to go on a vacation. If every year he plans on vacationing for $2,000, at an interest rate of 6% per year how many years will her money last without any further deposits?

Q4. John is 25 years old and wishes to retire in 30 years. His plan is to invest in a mutual fund earning a 8 percent annual return and have a $1 million retirement fund at age 55. How much must he invest at the end of each year to achieve this goal?