exam1C.ch1ch2ch2Ach5partial

# exam1C.ch1ch2ch2Ach5partial - Name Peoplesoft Number...

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Name __________________________________ Peoplesoft Number __________________________________ University of Houston C. T. Bauer College of Business Finance 3332 Fall, 2010 Exam 1C To receive full credit: Clearly indicate your answer Financial functions may be used only for finding annuity factors All inputs to find annuity factor must be shown Carry all decimals, rounding only final answer Decimal places should be rounded to four places (two in percent form) Currency answers rounded to the nearest cent, where applicable Include applicable units (\$, %, etc.) on answers 1. Lucille is saving for a new car and wants to have \$48,000 available in 6 years. How much must she save each year if  her account earns an annual rate of 5 percent? (6) 2. a) Richie borrowed \$80,000 at an annual rate of 6 percent to be repaid with annual payments over the next 15 years.  How much will be his annual payments? (6)     b) If Richie makes his payments at the beginning of each year, how much will be his annual payments? (4) 3. Jodie is planning to retire in 28 years. She wants to be able to withdraw \$125,000 per year for 50 years during her  retirement. How much must she save each year in order to meet her retirement objective if her account earns 7 percent per  year? (8) 4. How much must Gilbert deposit in an account which earns 6 percent per year, if he wants to have \$5000 in his  account in 20 years? (6) 5. Jaqui bought 700 shares of stock last year for \$60 per share., and over the last year, she received four quarterly

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## This note was uploaded on 02/13/2011 for the course FINA 3332 taught by Professor Darlachisholm during the Spring '08 term at University of Houston.

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exam1C.ch1ch2ch2Ach5partial - Name Peoplesoft Number...

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