Reference no: EM133183113

1. Determine the present value of a series of equal sized payments of $1200 at the end of every quarter for five years. Assume that money can earn 1.35% compounded quarterly.

Let's assume PMT is negative, so that PV comes out positive.

2. You deposit $20,000 into an account that can earn 2.5% compounded weekly, and agree to make end-of-week payments for the next two years to increase its value. If you would like the future value of the account to be $34,090, what should the size of the payments be?

Let's assume PV is negative since we are making a deposit. This means PMT will be negative (please enter it as a negative value below).

3. After making payments of $400 at the end of every month for two years, you allow the future value at that time to remain in the account for five more years accruing interest. Assuming an interest rate of 6% compounded monthly, determine the future value seven years from today.

Fill in the chart below to help you calculate the FV two years from today using the calculator.

PV=________

FV two years from today = __________

FV seven years from today =__________

4.The fair market value of a boat today is $35,000. You take out a loan to purchase the boat and agree to equal payments of $450 at the beginning of every month at a interest rate of 3% compounded bi-weekly. How many years will it take to pay the loan down to $5,000?

Since we have a loan, let's interpret PV as a positive value.

FV= ________

N= ________

t=__________-