1) Assume that you contribute$360 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $720 per month for another 25 years. Given a 6 percent interest rate, what is the value of your retirement plan after the 40 years? (Future value of multiple annuities)
2. You are looking to buy a car. you can afford $730 in monthly payments for five years. in addition to the loan, you can make a $830 down payment. if interest rates are 10.00 percent APR, what price of car can you afford? ( present value)
3. Compute the present value of an $1,350 payment made in 9 years when the discount rate is 11 percent. (present value)
4. Ross has decided that he wants to build enough retirement wealth that, if invested at 5 percent per year, will provide him with $4100 of monthly income for 25 years. To date, he 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? (contribute per month)