1. How much can I borrow for the purchase of my first home if I can afford to make monthly payments of $500, and the annual interest rate is 6% on a 30-year mortgage?
2. You borrow $1000 at a 10 percent annual rate to be repaid in 3 equal payments at the end of each of the next 3 years. How large is the total interest payment over the next three years?
3. Mr. Nelson will recieve $15,000 a year for the nect 20 years from her retirement fund. If a 5 percent interest rate is applied, what is the current value of her retirement fund?
4. How much would you have to invest today to recieve $40,000 in 10 years at 7.5 percent per year?
5. I invested $800,000 in a cattle ranch and I sold that ranch for $2,500,000 ten years later. What was my annual percentage rate return?
6. If you have $10,000 in a savings account earning 10 percent, how large of an annuity can you draw out each year if you want nothing left at the end of 7 years?
7. If you need $20,000 for your son's education in 10 years, how much must you invest at the begining of each year if you want nothing left at the end of 7 years?