Finance
A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,200 per month for the next three years and then $1,200 per month for two years after that. If the bank is charging customers 10.25 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Present value $
If you start making $60 monthly contributions today and continue them for five years, what’s their future value if the compounding rate is 10.25 percent APR? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Future value annuity $
What is the present value of this annuity? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Present value annuity $
Ross has decided that he wants to build enough retirement wealth that, if invested at 5 percent per year, will provide him with $4,100 of monthly income for 25 years. To date, he has saved nothing, but he still has 15 years until he retires.
How much money does he need to contribute per month to reach his goal? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Contribute per month $
To borrow $800, you are offered an add on interest loan at 9.2 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.)
Equal payments $
Compute the EAR of the loan. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
EAR
%
Hank purchased a $24,000 car two years ago using a 7 percent, 3-year loan. He has decided that he would sell the car now, if he could get a price that would pay off the balance of his loan.
What’s the minimum price Hank would need to receive for his car? (Round the loan payment to the nearest cent, but do not round any other interim calculations. Round your final answer to 2 decimal places.)
Minimum price $
If you start making $275 monthly contributions today and continue them for four years, what is their future value if the compounding rate is 9.50 percent APR? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Future value annuity $
1
What is the present value of this annuity? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Present value annuity $
If you start making $180 monthly contributions today and continue them for five years, what’s their future value if the compounding rate is 10.75 percent APR? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Future value annuity $
14,218.44
What is the present value of this annuity? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Present value annuity $
Consider a person who begins contributing to a retirement plan at age 25 and contributes for 40 years until retirement at age 65. For the first ten years, she contributes $2,600 per year. She increases the contribution rate to $4,600 per year in years 11 through 20. This is followed by increases to $9,600 per year in years 21 through 30 and to $14,600 per year for the last ten years. This money earns a 8 percent return.
First compute the value of the retirement plan when she turns age 65. (Round your answer to 2 decimal places.)
Value $
Compute the annual payment she would receive over the next 40 years if the wealth was converted to an annuity payment at 7 percent. (Round your answer to 2 decimal places.)