Problem 1: What are the monthly mortgage payments on a 30-year loan for $150,000 at 12%?
Problem 2: You have two assets in your portfolio: a stock mutual fund with a beta of 1.20 and U.S. Treasury securities (assume they are risk free). What is the beta for your portfolio if 40% of your funds are invested in the treasury securities?
Problem 3: Find the beta of a portfolio of three stocks. One third of the portfolio is invested in each of the three stocks. The stocks and their betas are as follows: Mallmart - beta 1.10, Peak Power - beta 0.85 and MicroEase - beta 1.40
Problem 4: What is an investment worth that promises to return $10,000 per year, given a required rate of return of 15%, if the benefits are expected for 10 years?
Problem 5: What will a deposit of $4,500 at 12% compounded monthly be worth at the end of 10 years?
Problem 6: How long does it take for $5,000 to grow into $6,742.44 at 10% compounded quarterly?
Problem 7: How much must you deposit at the end of each year in an account that pays a annual rate of 20 percent, if at the end of 5 years you want $10,000 in the account?
Problem 8: What interest rate would you need to get to have an annuity of $7,500 per year accumulate to $279,600 in 15 years
Problem 9: What would you pay for an annuity of $2,000 paid every six months for 12 years if you could invest your money elsewhere at 10% compounded semiannually?
Problem 10: Thirty years ago Jesse Jones bought 10 acres of land for $1,000 per acre in what is now downtown Houston. If this land grew in value at an 8 percent per annum rate, what is it worth today?
Problem 11: A $10,000 car loan has payments of $361.52 per month for three years. What is the interest rate? Assume monthly compounding and give the answer in terms of an annual rate.
Problem 12: Find the present value of $1,000 to be received at the end of 2 years at 12% compounded quarterly?