1. You currently have $60,000 in your bank account and you will need a total of $100,000 in 5 years to pay for a down payment on a house. What interest rate do you need to earn in order to have $100,000 in your bank account 5 years from now? Enter your answer as a percentage rounded to 2 decimal places. Do not include the percentage sign in your answer.
Enter your response below.
2. Suppose you take out a car loan that requires you to pay $10,000 now, $4,000 at the end of year 1, and $7,000 at the end of year 2. The interest rate is 5% now and increases to 8% in the next year. What is the present value of the payments?
Enter your response below rounded to 2 decimal places.
3. If you invest $5,000 into a savings account that yields quarterly compound interest with an annual interest rate of 7%, how much will you have in the savings account after 9 years?
Enter your response below (rounded to 2 decimal places).
4. Suppose you will receive payments of $1,000, $1,000, and $9,000 in 1, 5, and 9 year(s) from now, respectively. What is the total present value of this stream of payments if the interest rate is 9%?
Enter your response below rounded to 2 decimal places.
5. What is the present value of $30,000 that is received 10 years from now? The annual interest rate is 4%.
Enter your response below rounded to 2 decimal places.
6. An investment promises to pay you $8,000 per year forever with the first payment today. If alternative investments of similar risk earn 6.53% per year, determine the maximum you would be willing to pay for this investment.
Enter your response below (rounded to 2 decimal places).
7. If the real interest rate is 4.9% and the inflation rate is 2%, what is the nominal interest rate? Enter you answer as a percentage. Do not enter the percentage sign into your answer.
Enter your response below (rounded to 2 decimal places).
8. If the effective annual rate of interest is known to be 7% on a debt that has semi-annual payments, what is the annual percentage rate? Enter your answer as a percentage rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer.
Enter your response below.
9. Suppose you borrow $30,000 from a bank. The terms of the loan are 18 years with an interest rate of 5%. What are the annual loan payments at the end of the year to the bank?
Enter your response below (rounded to 2 decimal places).