1. What is the future value of a lump sum of $1,723, in 18 years, assuming an interest rate of 8.9 percent APR compounded semiannually?
2. Todd is able to pay $192 a month for 7 years for a car. If the interest rate is 4.62 percent APR, how much can Todd afford to borrow to buy a car?
3. Greg wants to provide for the education of his daughter. He would like to save a fixed amount for 25 years and then spend for 5 years starting in the 26th year. He would like to be able to give his daughter $22,500 for the first year of her college (the 26th year) and would like to increase the amount by 5% every year to compensate for inflation. If his investments earned 6.5% per year, what uniform amount will Greg have to save every year for 25 years to make this possible? The answer is one of the following...Please show work and which excel functions were used. If you do not get one of the following answers please don't reply to the question. ...
$1,356
$1,457
$1,567
$1,744