Homework answers / question archive / Exercise 1) Find Interest - $35,000 at 6% for 9 months       Exercise 2                    Find Interest - $1875 at 5

Exercise 1) Find Interest - $35,000 at 6% for 9 months       Exercise 2                    Find Interest - $1875 at 5

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Exercise 1) Find Interest - $35,000 at 6% for 9 months

 

 

 

Exercise 2                    Find Interest - $1875 at 5.3% for 7 Months

 

Exercise 3                   Find Interest - $8940 at 9%; loan made May 7 and due Sept. 19

 

Exercise 4                    Find FV – $3475 Loan at 7.5% for 6 Months

                                   

 

Exercise 5        Find FV – $24,500 Loan at 9.6% for 10 Months

                                   

 

Exercise 6                    Find Present Value of     $48,000 for 8 Months money earn 5%        

 future amount                  

                               

 

Exercise 7                          A. Find the Price of the T-Bill                    B. Find the actual Interest rate paid by the treasury

                                    6 Month T-Bill $18,000 with discount rate of 1.925%

 

             

 

Exercise 8                    $725896.15 Late income Tax Due 34 Days    9.8% Interest

                                     

 

Exercise 9        $10,000 Loan       6.75%     Total Interest Paid $618.75                                Find the time period (t)

                               

 

 

 

SECTION 5.2

Exercise 10                  Find compound amount - $1,000 at 6% compounded annually for 10 years

                       

Exercise 11                  Find compound amount - $15,000 at 4.6% compounded semi-annually for 11 years

                                                                               

 

Exercise 12                  Find Interest Earned - $22,000 at 5% compounded annually for 8 years

                                                           

Exercise 13                  Find Interest Earned - $27,630.35 at 4.6% compounded quarterly for 3.9 years

                                                           

 

Exercise 14      Find the interest rate (with annual compounding)         $9000 grows to $17,118 in 16 years

 

Exercise 15                  Find Face Value of 10 Year Bond at 4.1%; Price $13,328

               

Exercise 16      Find Face Value of 25 Year Bond at 4.4%; Price $10,106

               

Exercise 17      Find the APY corresponding to the given nominal rates              4.7% Compounded Semiannually

.            

                               

 

Exercise 18            If money can be invested at 6% compounded annually, which is larger, $10,000 now or $15,000 in 6 Years? Use Present Value to decide.

                                          

 

Exercise 19      A developer needs $80,000 to buy land. He can borrow at 10% compounded quarterly.

How much will the interest amount to if he pays it off in 5 years.

 

 

Exercise 20      Partner A contributes $10,000 now, Partner B will match equal amount in 3 years.               

                                How much will Partner B contribute? (Assume 6% compounded semiannually)

 

SECTION 5.3

 

Exercise 21      Find the future value of an Ord. Annuity         R = $20,000; 4.5% interest compounded annually for 12 years

               

 

Exercise 22       Find the future value of an Ord. Annuity         R = $20,000; 6% interest compounded quarterly for 12 years

                       

 

 

Exercise 23      Find the Final amount in each retirement account                          

 

Exercise 24       Find the amount of each PMT            R = $65,000; 6% compounded semiannually for 4 ½ years

               

 

Exercise 25       Find the Interest Rate needed             $100,000; quarterly payments of $1200 for 15 years

Exercise 26      Find the Future value of each annuity due.        Pmt $1050 for 8 years at 3.5% compounded annually

           

 

Exercise 27      Find the Future value of each annuity due.        Pmt $25000 for 12 years at 6% compounded annually

           

 

Exercise 28      Find the payment        $12,000; pmts for 6 years; interest rate 5.1%

                    

Exercise 29      $80 compounded monthly for 3 years 9 months (45 periods); 7.5% interest

                   

Exercise 30      $2435 compounded semiannually for 8 years (16 periods) 6% interest; leaves the money alone with no additional deposits for another 5 years (10 periods)

 

Exercise 31      Find the PV of ordinary Annutiy $890 Pmt, 6% compounded annually for 16 years

 

Exercise 32      Find the amount necessary to fund withdrawals $1200, 5.6% compounded annually for 14 years

 

Exercise 33      Find the payment made by the ordinary annuity w/ given PV  

 

Exercise 34      Find the lump sum deposited today that will yield the same total as payments of $10,000 at the end of each year for 15 years of the given interest rates                             4% Compounded Annually

First find the Future value of the lump sum, than find the present value that will match the sum of the future.

 

Exercise 35      Find price purchaser should be willing to pay, assume coupon rate is paid twice a year. 

$20,000 Bond coupon rate 4.5% matures in 8 years current Interest rate 5.9%

 

 

Exercise 36      Find the payment to amortize these loans $140,000; 12% compounded quarterly 15 quarterly payments

   

 

Exercise 37       Find monthly house payment necessary to amortize the given loans     $96,511 at 8.57% for 25 years

                                 

 

Exercise 38      Use the amort table.   How much of the 10^th payment is used to reduce the debt?

Exercise 39      Student borrow $35,000 10 years with monthly payments 7.43% compounded monthly