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Exercise 1- Candice Alvarez is investing $386,500 in a fund that earns 9% interest compounded annually.

What equal amounts can Candice withdraw at the end of each of the next 15 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Yearly withdrawals

Exercise 2 - Morgan Inc. will deposit $56,600 in a 11% fund at the end of each year for 7 years beginning December 31, 2017.

What amount will be in the fund immediately after the last deposit? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Exercise 3 - Amy Monroe wants to create a fund today that will enable her to withdraw $28,800 per year for 7 years, with the first withdrawal to take place 5 years from today.

If the fund earns 9% interest, how much must Amy invest today? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Exercise 4 - Riverbed Inc. issues $2,069,100 of 9% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%.

What amount will Riverbed receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Amount received by Riverbed when bonds were issued
$
Brief Exercise 6-16
Chris Taylor is settling a $18,550 loan due today by making 6 equal annual payments of $4,135.16.

Click here to view factor tables

Determine the interest rate on this loan, if the payments begin one year after the loan is signed. (Round answer to 0 decimal places, e.g. 8%.)
Interest rate
%
Brief Exercise 6-17
Henry Taylor is settling a $20,020 loan due today by making 6 equal annual payments of $5,290.03.

Click here to view factor tables

What payments must Henry Taylor make to settle the loan at the same interest rate but with the 6 payments beginning on the day the loan is signed? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

 

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