How much will you accumulate if you deposit $100 each month for 10 years into an account earning 3.6% APR? Remember: assume that payments occur at the end of each period (ordinary annuity) unless told otherwise, and compounding occurs with the same frequency as payments.
You need $77,680 today and can repay the money in annual installments of $8,940. If the rate of return is 9.8%, how long do you expect to take to repay the loan?
An investment provides you with $1,000 after six years and $2,000 after nine years. What is the present value of these cash flows if you require a 6% rate of return (discount the cash flows at that rate)?
A two-year investment requires monthly deposits of $80 at the beginning of each month. The deposits earn 6% per year. Calculate the investment’s future value.
If you want to have $3,000,000 at retirement in 44 years, how much money must you put in a retirement savings each month? Assume the account pays 8.4% APR compounded monthly.