1. What is the future value of $200 deposited today at eight percent interest compounded annually for three years? (rounded to the nearest dollar)
2. What is the present value of an ordinary annuity paying $1550 each year for 15 years, with an interest rate of 6.6% compounded annually? (rounded to the nearest dollar)
3. If you borrow $20 000 as a five-year loan from the bank and the bank requires you to make end-of-year payments of $4878.05, what is the annual interest rate on this loan if interest is compounded annually? (rounded to the nearest percent)
4. Rebecca, age 25, would like to start saving for retirement. She will be able to save $400 per month beginning immediately. She will retire once she has saved $1 million. Her investment portfolio will earn a rate of return of 8% compounded monthly during the entire time that she is saving. Approximately how many years will it take her to reach her savings goal?
5. If you want to save $40 000 for a down payment on a home in five years, assuming an interest rate of 4.5 percent compounded annually, how much money do you need to save each month? (rounded to the nearest dollar)
6. What is the effective interest rate for a credit card advertised at 28% interest compounded daily? (rounded to one decimal)
7. How long will it take Ivy's money to triple in value at 12 percent compounded quarterly?
8. Harman purchased his condo for $330 000 and now the appraised value is $360 000. His outstanding mortgage is $228 000. What is the maximum home equity line of credit Harry would qualify for?