Reference no: EM132355793
1. What is the future value of $490 per year for 88 years compounded annually at 10 percent?
2.? (Present value of an ordinary? annuity) What is the present value of ?$2 comma 000 per year for 9 years discounted back to the present at 11 ?percent?
3. You are graduating from college at the end of this semester and after reading the The Business of Life box in this? chapter, you have decided to invest ?$4 comma 800 at the end of each year into a Roth IRA for the next 42 years. If you earn 9 percent compounded annually on your? investment, how much will you have when you retire in 42 ?years? How much will you have if you wait 10 years before beginning to save and only make 32 payments into your retirement? account?
4. (Annuity payments) Mr. Bill S.? Preston, Esq., purchased a new house for ?$90 comma 000. He paid ?$25 comma 000 upfront and agreed to pay the rest over the next 30 years in 30 equal annual payments that include principal payments plus 11 percent compound interest on the unpaid balance. What will these equal payments? be?
a. Mr. Bill S.? Preston, Esq., purchased a new house for ?$90 comma 000 and paid ?$25000 upfront. How much does he need to borrow to purchase the? house?
5. (Annuity payments) To pay for your? child's education, you wish to have accumulated ?$13 comma 000 at the end of 13 years. To do? this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 11 percent compounded? annually, how much must you deposit each year to obtain your? goal?
6. (Annuity number of? periods) How long will it take to pay off a loan of ?$49 comma 000 at an annual rate of 9 percent compounded monthly if you make monthly payments of ?$550?? Use five decimal places for the monthly percentage rate in your calculations.
7. ?(Annuity interest? rate) Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for ?$22 comma 122.72 that will pay them ?$2 comma 500 per year for 15 years. They? don't have the slightest idea what return they would be making on their investment of ?$22 comma 122.72. What rate of return would they be? earning?