1) A couple borrows $30,000 to purchase a new car. They plan to pay it back in equal monthly payments over 2 years. If money is worth 6% find the monthly payment.
2) An investment will pay out $5500 at the end of each year for the next 8 years. What is the investment worth today? Assume a 8% interest rate.
3) What is the rate of return of $10,000 today worth $20,000 in 12 years?
4) For the next 5 years, the interest rate is assumed to be 4%. After that the interest rate is assumed to be 6% for the next 4 years. The interest rate is then assumed to be 8% for the next 8 years. What is the future value of a $10,000 investment today?