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.
 Fall '
 Bonacci
 Math

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