Reference no: EM132660727

1) John plans to buy a vacation home in 5 years from now and wants to have saved $86,216 for a down payment. How much money should he place today in a saving account that earns 9.15 percent per year ( compounded daily ) to accumulate money for his down payment? Round the answer to two decimal places.

2) You have accumulated some money for your retirement. You are going to withdraw $65,897 every year at the end of the year for the next 21 years. How much money have you accumulated for your retirement? Your account pays you 16.08 percent per year, compounded annually. To answer this question, you have to find the present value of these cash flows.

Round the answer to decimal places.

3) You placed $7,106 in savings account today that earns an annual interest rate of 9 percent compounded annually. How much will you have in this account at the end of 29 years? Assume that all interest received at the end of the year is reinvested the next year. Round the answer to two decimal places.

4) You need to accumulate $77,935 for your son's education. You have decided to place equal year-end deposits in a saving account for the next 15 years. The savings account pays 11.81 percent per year, compounded annually. How much will each annual payment be? Round the answer to two decimal places.

5) For the next 13 years, you decide to place $3,516 in equal year-end deposits into a saving account earning 12.92 percent per year. How much money will be in the account at the end of that time period? Round tithe answer to two decimal places.

6) You plan to buy the house of your dreams in 18 years. You have estimated that the price of the house will be $100,447 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 6.74 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?

Round the answer to two decimal places.

7) You placed $6,056 in a savings account today that earns an annual interest rate of 14.57 percent, compounded semiannually. How much will you have in this account at the end of 34 years? Assume that all interest received at the end of the period is reinvested the next period. Round the answer to two decimal places.

8) Your savings account has a nominal annual interest rate of 6.64 percent, compounded monthly. Calculate has effective annual rate, or EAR (annual percentage yield).

Round the answer to two decimal places in percentage form. (write the percentage sign in the "units" box)

9) What is the present value of the following annuity?

$2,416 every quarter year at the end of the quarter for the next 7 years, discounted back to the present at 14.64 percent per year, compounded quarterly? Round the answer to two decimal places.