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University of North Georgia, Dahlonega FINC 3440 Exam 13 1)Assume that you invest $500 today and you earn a return of 6

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University of North Georgia, Dahlonega

FINC 3440

Exam 13

1)Assume that you invest $500 today and you earn a return of 6.6% per year, compounded monthly. How much will you have after ten years?

2. How many years are required for $845 to increase to $1,770 if the interest rate is 9.1% per year?

3. What is the future value of an ordinary annuity that pays $600 annually for eight years if the interest rate is 8.3% per year?
4. If the present value of an ordinary annuity that pays $175 each year for ten years is $1,357.89,

what is the annual discount rate?

5. If you borrow $260,000 for thirty years to buy a house at an interest rate of 6.6% per year, what is the monthly loan payment?
6. Assume that you borrow $150,000 for seven years at an interest rate of 5.5% per year. If the loan

has semiannual 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. What is the present value of a perpetuity that pays $500 per year when the discount rate is 4.6%

per year?

9. Assume that you will invest $100 in one year, $200 in two years, and $300 in three years. If you earn an interest rate of 6.7% per year, how much will you have in three years?
10. You intend to lease a $55,000 car. The lease term is six years and the financing rate is 6.3% per

year. If the value of the car at the end of the lease is expected to be $40,500, what is the monthly lease payment?