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1st exam study problems #1

1st exam study problems #1 - per month What is my monthly...

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1st exam study problems #1 1. I deposit $2000 now at an interest rate of 4.75% per year. How much will I accumulate in 7 years? 2. How many years would it take me to save $12,000 if I deposit $400 now and earn interest at a rate of 6.8% per year? 3. What is the value today of $1,200,000 I expect to inherit 27 years from today if the inflation rate (think interest rate) is 3.2% per year? 4. I plan to invest $2600 now with hopes of growing it to $5000 in 4 years. What rate of return in % per month do I need to accomplish this goal? 5. I purchase a car today for $35,000. Terms of the deal are 4% down with the balance financed over 60 months at an interest rate of 0.48%
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Unformatted text preview: per month. What is my monthly payment?. 6. I start a college savings program. I expect to need $85,000 in 16 years. If I deposit $1500 now from a bonus check and save $250 each month, How much more will I have to deposit in 5 years to achieve my goal if interest rates remain at .5% per month? 7. I borrow $10,000 today at 1% per month with monthly payments & a term of 10 years. What will my balance be in 5 years if I make an additional payment of $1,000 at the end of year 2? When will the loan be paid in full?...
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