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Q1. To live at ease, you decide that you will require $1.75 million dollars by the time you are 65.  If now is your 35th birthday and you decided, beginning next year and on every birthday up to and comprising your 65th birthday, you will invest the similar amount how much should you invest per annum? Again the fair interest rate is 7% per annum.

Q2. You are in the procedure of purchasing a new automobile which will cost you $27,500. The dealership is providing you either a $2,500 rebate (applied toward purchase price) or financing at a 1.9% APR for 48 months (with payments made at the end of month). You have been pre-approved for the auto loan via your local credit union at an interest rate of 6.5% APR for 48 months. If you take $2,500 rebate and finance your new car via your credit union compute your monthly payments.

Q3. Compute the monthly payments if you forgo $2,500 rebate and finance your new car via the dealership.  

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M912332

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