Chapter 6
Question 21
Input area:
Output area:
Monthly payment 500$
Discount rate 1.7%
Current balance 16,000$
Chapter 6
Question 22
Input area:
Output area:
Interest rate per week 33.33%
Present value 3$
Future value 4$
Chapter 6
Question 23
Input area:
Output area:
Monthly payment 1,500$
Contract price 115,000$
Chapter 6
Question 24
Input area:
Output area:
Monthly deposit 400$
# of times compounded per year 12
Interest rate on annuity 10%
# of years 30
Chapter 6
Question 25
Input area:
Output area:
EAR 10.47%
# of times compounded per year 12
Interest rate on annuity 10%
# of years 30
Chapter 6
Question 26
Input area:
Output area:
Quarterly withdrawal 2,500$
# of times compounded per year 4
# of years 4
Interest rate per quarter 0.47%
Discount rate 9%
# of times compounded 4
Chapter 6
Question 28
Input area:
Output area:
Discount rate 7.38%
Chapter 6
Question 29
Input area:
Output area:
Interest rate 9%
# of years 10
Chapter 6
Question 30
Input area:
Output area:
Effective annual rate 14%
# of times compounded 2
# of times compounded 4
# of times compounded 12
Chapter 6
Question 31
Input area:
Output area:
Balance in six months 6,015.02$
Balance in one year 6,544.75$
Interest rate first six months 0.50%
Interest rate thereafter 17%
# of times compounded 12
Balance transferred 6,000$
Chapter 6
Question 32
Input area:
Output area:
FV of stock account 1,808,390.34$
FV of bond account 401,806.02$
Total account FV 2,210,196.36$
Monthly stock investment 800$
Monthly bond investment 400$
Stock return 10%
Bond return 6%
Years to save 30
Retirement return 7%
Retirement years 25
Chapter 6
Question 33
Input area:
Output area:
Interest per month # of years Amount invested Future value
Chapter 6
Question 34
Input area:
Output area:
Years to save 40
Years to wait before beginning –
Years to wait before beginning 10
Years to wait before beginning 20
Chapter 6
Question 35
Input area:
Output area:
Effective annual rate 300.00%
Annual percentage rate 165.69%
Present value 1$
Future value 4$
Number of periods 1
Chapter 6
Question 36
Input area:
Output area:
Amount per year in option 1 75,000$
Amount per year in option 2 64,000$
Signing bonus in option 2 20,000
Interest rate 10%
# of times compounded per year 12
Chapter 6
Question 37
Input area:
Output area:
Payment today 1,000,000$
Length of payments 30
Annual increase 3%
Chapter 6
Question 38
Input area:
Output area:
Next year’s salary 61,800$
Next year’s deposit 4,944$
Present value deposits 65,538.05$
Current salary 60,000$
Percent of salary to deposit 8%
Salary increase 3%
Deposit length 40
Chapter 6
Question 39
Input area:
Output area:
# of years 20
Annuity payment per year 7,500$
Interest rate 10%
Interest rate 5%
Interest rate 15%
Chapter 6
Question 40
Input area:
Output area:
Monthly payment 290$
Interest rate 7%
Future value of account 20,000$