Rachel purchased a $23,000 car three years ago using a 9 percent, 5-year loan. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan.
What is the minimum price Rachel would need to receive for her car?
Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, and $1,850.
Assume that you contribute $320 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $640 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 50 years?
If the future value of an ordinary, 6-year annuity is $5,900 and interest rates are 7.5 percent, what is the future value of the same annuity due?
If the present value of an ordinary, 8-year annuity is $6,100 and interest rates are 8.0 percent, whatâs the present value of the same annuity due?
| Rachel purchased a $23,000 car three years ago using a 9 percent, 5-year loan. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan. |
| What is the minimum price Rachel would need to receive for her car? Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, and $1,850. |
| Assume that you contribute $320 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $640 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 50 years?
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