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University of North Georgia, Dahlonega FINC 3440 Exam 9 1)If the interest rate is 5

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University of North Georgia, Dahlonega

FINC 3440

Exam 9

1)If the interest rate is 5.4% per year, what is the future value of $400 in eight years?

2. What annual interest rate is required for an amount to triple in fifteen years?
3. What is the present value of an ordinary annuity that pays $200 annually for nine years if the discount rate is 5.6% per year?
4. If the present value of an ordinary annuity that pays $250 each year for four years is $839.21, what is the annual discount rate?
5. If you borrow $2,000 for four years at an interest rate of 8.0% per year, what is the annual loan payment?
6. Assume that you borrow $12,000 for four years at an interest rate of 5.7% per year. If the loan has monthly payments, what is the amount of interest in the first payment?
7. Assume that you borrow $36,000 for six years at an interest rate of 3.6% per year. If the loan has monthly payments, what is the amount of principal in the first payment?
8. The present value of a perpetuity is $4,593.10 and the annual payment is $335.30. What is the annual discount rate?
9. You currently have $400 in a bank account. Assume that you will deposit $200 in one year, $300 in two years, and $400 in three years. If you earn an interest rate of 4.1% per year, how much will you have in three years?
10. Assume that you have $300,000 in your retirement account, you plan to invest $12,000 at the

end of each year, and your goal is to have $1,000,000. If you earn an interest rate of 8.1% per year, how many years will it take for you to achieve your goal?