0.9 Mathematics of finance: homework  (Page 3/7)

Mrs. Brown needs $5,000 in three years. If the interest rate is 9%, how much should she save at the end of each month to have that amount in three years?

A company has a $120,000 note due in 4 years. How much should be deposited at the end of each quarter in a sinking fund to payoff the note in four years if the interest rate is 8%?

You are now 20 years of age and decide to save $100 at the end of each month until you are 65. If the interest rate is 9.2%, how much money will you have when you are 65?

Is it better to receive $400 at the beginning of each month for six years, or a lump sum of $25,000 today if the interest rate is 7%? Explain.

In order to save money for a new computer Jill decided to save $125 at the beginning of each month for the next 8 months. If the interest rate is 7%, how much money will she have at the end of 8 months?

Mrs. Gill puts $2200 at the end of each year in her IRA account that earns 9% per year. How much total money will she have in this account after 20 years?

If the inflation rate stays at 6% per year for the next five years, how much will the price be of a $15,000 car in five years? How much must you save at the end of each month at an interest rate of 7.3% to buy that car in 5 years?

Shawn has won a lottery paying him $10,000 per month for the next 20 years. He'd rather have the whole amount in one lump sum today. If the current interest rate is 8.2%, how much money can he hope to get?

Sonya bought a car for $15,000. Find the monthly payment if the loan is to be amortized over 5 years at a rate of 10.1%.

You determine that you can afford $250 per month for a car. What is the maximum amount you can afford to pay for a car if the interest rate is 9% and you want to repay the loan in 5 years?

Compute the monthly payment for a house loan of $200,000 to be financed over 30 years at an interest rate of 10%.

If the $200,000 loan in the previous problem is financed over 15 years rather than 30 years at 10%, what will the monthly payment be?

Friendly Auto offers Jennifer a car for $2000 down and $300 per month for 5 years. Jason wants to buy the same car but wants to pay cash. How much must Jason pay if the interest rate is 9.4%?

The Gomez family bought a house for $175,000. They paid 20% down and amortized the rest at 11.2% over a 30-year period. Find their monthly payment.

Mr. and Mrs. Wong purchased their new house for $350,000. They made a down payment of 15%, and amortized the rest over 30 years. If the interest rate is 9%, find their monthly payment.

A firm needs a piece of machinery that has a useful life of 5 years. It has an option of leasing it for $10,000 a year, or buying it for $40,000 cash. If the interest rate is 10%, which choice is better?

Jackie wants to buy a $19,000 car, but she can afford to pay only $300 per month for 5 years. If the interest rate is 6%, how much does she need to put down?