| 1)- Your daughter has just given birth to your first grandchild. You decide to start a college fund for the child. You want the fund to have $300,000 in it when the child turns 18. You think you can get a return of 10% per year on your investment. How much should you deposit in the fund? |
|||||||||||||||||||||||||||||||
| Ignore taxes. Show your work. If you use Excel, show the formula with the parameters, and the answer. If you use a formula, provide the standard formula, the formula with terms substituted, and the answer. If you use a calculator, show the inputs and the answer. |
|||||||||||||||||||||||||||||||
| 2) You want to buy a car. To do so, you will need to take out a loan in the amount of $22,000. The longest you are willing to pay on the loan is five years. The interest rate on this type of loan is 5.0% per year. |
|||||||||||||||||||||||||||||||
| How much will the equal monthly payments be? |
|||||||||||||||||||||||||||||||
| Ignore taxes. Show your work. If you use Excel, show the formula with the parameters, and the answer. If you use a formula, provide the standard formula, the formula with terms substituted, and the answer. If you use a calculator, show the inputs and the answer. |
|||||||||||||||||||||||||||||||
| 3)You have been diligently saving to buy a boat. For the last 10 years, you have been putting $50 per month into a secret savings account paying .5% interest per year. You started with $0. You just discovered that your spouse knew about the account the whole time and has been withdrawing $45 each month for the last 10 years. How much money do you have in the account? |
|||||||||||||||||||||||||||||||
| Ignore taxes. Show your work. If you use Excel, show the formula with the parameters, and the answer. If you use a formula, provide the standard formula, the formula with terms substituted, and the answer. If you use a calculator, show the inputs and the answer |
|||||||||||||||||||||||||||||||
Categories: