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Unformatted text preview: price in B) if you can save the $350 a month? 2. You are planning on paying your student loan off as quickly as possible. You've decided that the $10,000 you borrowed will be paid back by the end of five years. With an 8% interest rate, what must you pay each month in order to achieve your goal? 3. You need $10,000 for a downpayment on a house. You can save $300 a month towards the house. You wish to purchase the house in 18 months. What is the interest rate you must earn to achieve the goal? 4. A. If you buy utility stock today for child's education ($1000) and it is earning 20% per year. What will the value of your child's education be in 18 years? B. If you put $25 every two weeks (26 times per year) into a savings account at 5% what will the account be worth in 18 years (26*18 periods)? Interest is compounded every two weeks....
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This note was uploaded on 07/09/2011 for the course FIN 3140 taught by Professor Staff during the Spring '11 term at UNF.
- Spring '11
- Time Value Of Money