| 1. If you put up $34,000 today in exchange for a 7.65%, 15-year annuity, what will the annual cash flow be? |
| 2. If you deposit $4,000 at the end of each of the next 20 years into an account paying 11.2% interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years? Annuity value- |
| 3. Dinero Bank offers you a $50K, seven-year term loan at 7.5% annual interest. What will your annual loan payment be? |
| 4. The Maybe Pay Life Insurance company is trying to sell you an investment policy that will pay you and your heirs $25,000 per year forever. If the required return on this investment is 7.2%, how much will you pay for the policy? |
| 5. Referring to information from #4: Suppose a sales associate told you the policy costs $375,000. AT what interest rate would this be a fair deal? |
| 6. Golden Door Credit Bank if offering a 9.3% compounded daily on its savings accounts. If you deposit $4,500 today, how much will you have in the account in 5/10/20 years? |
11 years ago
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