1.If you invest $10,000 into a savings account at an interest rate of 1%, compounded annually, how much will you have in the savings account after 14 years?
Enter your response below rounded to 2 decimal places.
2. Suppose you take out a car loan that requires you to pay $6,000 now, $4,000 at the end of year 1, and $7,000 at the end of year 2. The interest rate is 1% now and increases to 7% in the next year. What is the present value of the payments?
Enter your response below rounded to 2 decimal places.
3. If you invest $1,000 into a savings account at an annual interest rate of 5% (APR), compounded semi-annually, how much will you have in the savings account after 10 years?
Enter your response below (rounded to 2 decimal places).
4. Assume the total cost of a university education will be $230,000 when your child enters university in 6 years. You presently have $200,000 to invest. What annual rate of interest (APR) must you earn, if the interest is compounded quarterly? Enter your answer as a percentage. Do not include the percentage sign in your answer.
Enter your response below rounded to two decimal places.
5. Suppose you will receive payments of $9,000, $1,000, and $1,000 in 3, 6, and 7 year(s) from now, respectively. What is the total future value of all payments 10 years from now if the interest rate is 4%?
Enter your response below rounded to 2 decimal places.