Final review 1

# Theycanpayamaximumof750permonthifthe

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Unformatted text preview: in order to receive \$500 per quarter for the next five years? N = _______________ I% = _______________ PV = _______________ PMT = _______________ FV = _______________ P/Y = _______________ C/Y = _______________ 9) A couple wishes to borrow \$85,000 in order to buy a house. They can pay a maximum of \$750 per month. If the loan is at 9.5% compounded monthly, a) how many months will it take to pay off the loan? (Round answer to next higher month if not an integer.) __________________________ b) How much total interest is paid by the couple? _______________________ a) b) N = _______________ I% = _______________ PV = _______________ PMT = _______________ FV = _______________ P/Y = _______________ C/Y = _______________ 2 10) An individual makes annual year - end deposits of \$500 into an ordinary annuity. After 10 years, the annuity is worth \$9,700. What annual rate (compounded annually) has this annuity earned? N = _______________ I% = _______________ PV = _______________ PMT = _______________ FV = _______________ P/Y = _______________ C/Y = _______________ 11) A person deposits \$2,000 each year for 25 years into an IRA. When she retires immediately after making the 25th deposit, the IRA is worth \$220,000. a) Find the interest rate earned over the 25 - year period leading to retirement. ______________________________________________ b) Assume the IRA continues to earn the interest rate found in part (a). How long can the retiree withdraw \$30,000 per year? _____________________________ c) How long can she withdraw \$24000 per year? _________________________ N = _______________ I% = _______________ PV = _______________ PMT = _______________ FV = _______________ P/Y = _______________ C/Y = _______________ 12) Solve by substitution: 2 x - 3y = 7 4 x + y = 7 13) Solve by elimination using addition: 8 x -...
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## This document was uploaded on 03/12/2014 for the course M 118 at Indiana SE.

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