Your parents are giving you $310 a month for 5 years while you are in college. At a 8 percent discount rate, what are these payments worth to you when you first start college?
Todd is able to pay $310 a month for 4 years for a car. If the interest rate is 6.2 percent, how much can Todd afford to borrow to buy a car?
You are considering an annuity which costs $74,100 today. The annuity pays $6,000 a year. The rate of return is 5 percent. What is the length of the annuity time period?
You borrow $7,030 to buy a car. The terms of the loan call for monthly payments for 7 years a rate of interest of 8 percent. What is the amount of each payment?
The Good Life Insurance Co. wants to sell you an annuity which will pay you $640 per quarter for 25 years. You want to earn a minimum rate of return of 4.9 percent. What is the most you are willing to pay as a lump sum today to buy this annuity?