1. Future Value.What is the future value of
a. $773 invested for 14 years at 11 percent compounded annually? $3331.97
b. $210 invested for 7 years at 6 percent compounded annually? $315.76
c. $650 invested for 10 years at 9 percent compounded annually? $1538.79
d. $615 invested for 7 years at 14 percent compounded annually? $1538.90
2. Present Value. What is the present value of
a. $803 to be received 10 years from now at a 15 percent discount rate? $198.49
b. $406 to be received 6 years from now at a 5 percent discount rate? $302.96
c. $300 to be received 10 years from now at a 9 percent discount rate? $126.72
d. $632 to be received 14 years from now at a 14 percent discount rate? $100.94
3. Future Value of an Annuity. What is the future value of
a. $557 a year for 14 years at 5 percent compounded annually? $10916.44
b. $748 a year for 8 years at 10 percent compounded annually? $8554.04
c. $442 a year for 8 years at 12 percent compounded annually? $5436.46
d. $976 a year for 12 years at 5 percent compounded annually? $15535.12
4. Present Value of an Annuity. What is the present value of
a. $1,163 a year for 15 years at an 8 percent discount rate? $9954.76
b. $329 a year for 7 years at a 15 percent discount rate? $1368.78
c. $365 a year for 10 years at a 10 percent discount rate? $2242.77
d. $883 a year for 6 years at a 5 percent discount rate? $4481.84
5. How many years will it take to grow
a. $711 to a value of 2,028.19 at a compound rate of 14 percent? 8
b. $321 to a value of 450.22 at a compound rate of 7 percent? 5
c. $931 to a value of 1,305.78 at a compound rate of 7 percent? 5
d. $1,191 to a value of 4,189.79 at a compound rate of 15 percent? 9
6. Interest Rate. At what interest rate will it take to grow
a. $759 to a value of 1,017.13 over 6 years? 5%
b. $614 to a value of 1,082.08 over 5 years? 12%
c. $701 to a value of 1,311.16 over 6 years? 11%
d. $1,190 to a value of 4,163.16 over 12 years? 11%
7. Annuity. How many years will it take for a payment of
a. $825 to grow to 17,642.03 at a compound rate of 10 percent? 11.77
b. $356 from a future value of 13,271.58 at a compound rate of 12 percent? 15
c. $1,098 from a future value of 6,189.53 at a compound rate of 6 percent? 5
d. $733 from a future value of 14,365.80 at a compound rate of 5 percent? 14
8. Annuity. At what interest rate will a payment of
a. $346 grow to 12,898.78 over a period of 15 years? 12%
b. $1,056 grow to 10,834.35 over a period of 8 years? 7%
c. $696 grow to 22,113.65 over a period of 15 years? 10%
9. Car Loans (Hint: P/Y=12). How much is a car loan with a payment of
a. $257 per month for 3 years at 6% interest per year? $8447.85
b. $437 per month for 5 years at 15% interest per year? $18369.12
c. $274 per month for 6 years at 7% interest per year? $16071.32
d. $253 per month for 2 years at 7% interest per year? $ 5650.78
10. Car Loans (Hint: P/Y=12). How many months will you pay on a car loan of
a. $18,708 with a payment of 406.76 per month at 11% interest per year? 60
b. $10,112 with a payment of 276.33 per month at 14% interest per year? 48
c. $32,705 with a payment of 1,101.96 per month at 13% interest per year? 36
d. $34,136 with a payment of 1,638.97 per month at 14% interest per year? 24
11. Car Loans (Hint: P/Y=12). What is the interest rate on a loan of
a. $8,000 with a payment of 218.61 per month for 4 years? 14%
b. $16,000 with a payment of 368.47 per month for 4 years? 5%
c. $24,000 with a payment of 521.82 per month for 5 years? 11%
d. $32,000 with a payment of 664.27 per month for 5 years? 9%
12. Mortgages (Hint: P/Y=12, House cost = Loan Value/0.9). What is the house cost on a 10 percent down mortgage with payments of
a. $4,369.66 per month for 30 years at 10 percent interest? $553253.35
b. $1,626.83 per month for 15 years at 11 percent interest? $159035.24
c. $3,724.21 per month for 30 years at 8 percent interest? $563949.90
d. $4,469.19 per month for 15 years at 14 percent interest? $372879.21
13. Mortgages (Hint: P/Y=12). What is the interest rate on a mortgage of
a. $863,001 with a payment of 5,174.13 for 30 years? 6%
b. $125,709 with a payment of 1,275.02 for 15 years? 9%
c. $546,227 with a payment of 6,906.73 for 30 years? 15%
d. $478,167 with a payment of 3,781.31 for 15 years? 5%
14. Mortgages (Hint: P/Y=12). What is the payoff on a 30 year, 6% mortgage of
a. $255,413 with a payment of 1,531.33 with 7 years remaining? $104824.8
b. $530,493 with a payment of 3,180.57 with 9 years remaining? $264,920.57
c. $297,266 with a payment of 1,782.26 with 13 years remaining? $192,734.38
d. $108,947 with a payment of 653.19 with 13 years remaining? $70,636.25