If you bought a 1000 face value cd that matured in nine

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Reference no: EM13395854

1. If you bought a $1,000 face value CD that matured in nine months, and which was advertised as paying 9% annual interest, compounded monthly, how much would you receive when you cashed in your CD at maturity?

2.You credit card statement says that you will be charged 1.05% interest a month on unpaid balances. What is the Effective Annual Rate (EAR) being charged?

3.To finance your newborn daughter’s education you deposit $1,200 a year at the beginning of each of the next 18 years in an account paying 8% annual interest. How much will be in the account at the end of the 18th year?

4.Paul's Perfect Peugeot says they'll sell you a brand new Italian“Iron Man” motor scooter for $1,699. Financing is available, and the terms are 10% down and payments of $46.57 a month for 40 months. What annual interest rate is Paul charging you?

5.You would like to have $1,000,000 40 years from now, but the most you can afford to invest each year is $1,200. What annual rate of return will you have to earn to reach your goal?

6. (Monthly loan payment) Best Buy has a flat-screen HDTV on sale for $1,995. If you could borrow that amount from Carl's Credit Union at 12% for 1 year, what would be your monthly loan payments?

7.You would like to have $1,000,000 accumulated by the time you turn 65, which will be 40 years from now. How much would you have to put away each year to reach your goal, assuming you're starting from zero now and you earn 10% annual interest on your investment?

8.If your required rate of return was 12% a year, how much would you pay today for $100 a month forever?

9.what is the PV of the following project?

10.what is the FV at the end of year 4 of the following project?

Reference no: EM13395854

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