1. What is the present value of $3,000 per year for 8 years discounted back to the present at 9 percent is $_____(Round to the nearest cent)
2. You are graduating from college at the end of this semester and after reading The Business of Life box in this chapter, you have decided to invest $4,400 at the end of each year into a Roth IRA for the next 40 years. If you earn 6% compounded annually on your investment, how much will you have when you retire in 40 years? How much will you have if you wait 10 years before beginning to save and only make 30 payments into your retirement account? (Round to nearest cent)
3. Mr. Bill S Preston, Esq., purchase a new house for $90,000. He paid $10,000 upfront and agreed to pay the rest over the next 30 years in 30 equal annual payments that include principal payments plus 14 percent composed interest on the unpaid balance. What will these equals payments be? (Round to nearest dollar)
4. To pay for your child’s education, you wish to have accumulated $13,000 at the end of 14 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 12% compounded annually. How much must you deposit each year to obtain your goal? (Round to nearest cent)
5. How long it take to pay off a loan of $55,000 at an annual rate of 11 percent compounded monthly if you make a monthly payments of $650? Use five decimal places for the monthly percentage rate in you calculation. (Round to one decimal place).