pv questions

<1600

1600-1700

1700-1800

1800-1900

1900-2000

>2000

3. Suppose that you wish to buy a new home that will cost you $400,000. You must put $75,000 down, and will finance the rest at 4.8% APR, making monthly payments for 30 years at the end of each month. How much of your second payment will be interest?

4. Suppose that you wish to buy a new home that will cost you $474,540. You must put $80,000 down, and the bank offers you a 5-year 5% APR negative amortization loan with a payments $1,298 per month, and a balloon payment of $60,162 (your 360th payment). How much will your remaining payments be?

5.Suppose that you just turned 25 years old and decide to put $4,397 into investments at the end of each year until age 60 (35 years from now). You have no savings. Your EAR is 6.1%. How much will you have by age 60?

6. Suppose that your retirement account has reached a value of $667,869 at age 60. If you let the funds remain invested an EAR of 5.6% until age 65, and do not make further contributions, how much can you receive annually in perpetuity (at the end of the year) starting at end of the year at age 65?

7. Suppose that you just turned 25 years old and that you wish to receive an annual annuity of $91,946 for 30 years (end of each year age 65-95). How much would you have to contribute annually at the end of each year ages 25-60 , if you then let the funds vest until age 65 with no further contributions? Your EAR is 7.2%.

8. Suppose that you just turned 25 years old and that you wish to receive a monthly ordinary annuity of $9,302 for 30 years (ages 65-95, end of month payments). How much would your monthly contributions also be at the end of each month until age 60, if you let the funds vest until age 65 with no further contributions? Your EAR is 6%?

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