Assignment
1. $13,000 is invested for 8 years at annual simple interest rate of 15%.
(a) How much interest will be earned?
(b) What is the future value of the investment?
2. What interest will be earned if $6100 is invested for 6 years at 13% compounded monthly?
3. What lump sum does Diana need to deposit in an account earning 9%, compounded quarterly, so that it will grow to $70,000 in 10 years?
4. Find the future value of an ordinary annuity of $70 paid quarterly for 5 years, if the interest rate is 7%, compounded quarterly.
5. Peter is saving to buy a car by depositing $250 at the end of each month in an account that pays 4.8% compounded monthly. What will the final amount be in 5 years?
6. Juanita Domingo's parents want to establish a college trust for her. They want to make 16 quarterly withdrawals of $2500, with the first withdrawal 3 months from now. If money is worth 6.5%, compounded quarterly, how much must be deposited now to provide for this trust?
7. A sinking fund is established to discharge a debt of $60,000 in 15 years. If deposits are made at the end of each 6-month period and interest is paid at the rate of 8%, compounded semiannually, what is the amount of each deposit?
8. If a bank pays 3.25% compounded monthly, what is the effective interest rate? (round your final answer to 2 decimal places)
9. A recent graduate's student loans total $15,000. If these loans are at 5%, compounded quarterly, for 12 years, what are the quarterly payments?
10. John buys a house for $370,000. He makes a $150,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next 13 years. The interest rate on the debt is 10%, compounded semiannually.
(a) Find the size of each payment.
(b) Find the total amount paid for the purchase.
(c) Find the total interest paid over the life of the loan.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.