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Week+11+in Class+Assignment

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Lovepreet malhi
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17 views

Week+11+in Class+Assignment

Uploaded by

Lovepreet malhi
Copyright
© © All Rights Reserved
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Question 1

In 3 years you want to have $5000 in the bank, if the interest rate was 8%, how much do you need now?

FV ($5,000)
Years 3
Rate 8%
PV $3,969.16

Question 2

You currently have $5000 in the bank, you plan on keeping it in the bank for 10 years at a interest rate of 5%, how much will y

PV ($5,000)
Years 10
Rate 5%
FV $8,144.47

Question 3

You currently have a student loan for $12,000 at a 6% interest. You currently pay $222.00 a month and interest compunds 12

Loan ($12,000)
Interest rate 6%
Monthy payment $222
Compound period per year 12

Period terms in month 63.12

Question 4

You currenlty have a loan for $5000 due in 60 mths with interest compounded monthly. You pay a monthly payment of $93.2

Loan amount ($5,000)


Payments $93.22
Period 60
Compounds per year 12

Interest Rate 4.5%

Question 5

You currently have a loan $6000 at 4.5% for 5 years compounding monthly. What is your monthly payment?

Loan amount ($6,000)


Interest rate 4.50%
Period 5
Compounds 12
Payment $111.86

Question 6

What deposit today would you have to make at your bank at a rate of 8% if you wanted to witthdrawal $100 each year for 5 y

Payment ($100)
Interest Rate 8%
Number of payments 5
PV $399.27

Question 7

Assume that you are planning on retirement in 30 years. If you deposit $5,500 at the end of each year into an RRSP that will e

Payment ($5,500)
Interest Rate 7.50%
Number of payments 30
FV $568,696.71

Question 8

a. You are looking at buying a house and have a maximum budget of $1315 per month. The house you really like is $300,000 a

Purchase price ($300,000)


Interest Rate 5%
Down Payment 0%
Period 300

Payment $1,753.77
No , I cannot afford this house . As my bugdet is only $ 1315.
b. How much of a down payment would you have to put dow to be able to afford this house?
Purchase price ($300,000)
Interest rate 5%
Down Payment 25%
Period 300

Payment $1,315.33

Question 9
You are looking to save $30,000, you currently have $5000 in the bank and plan on saving an additional $00 er month untill yo

Interest rate 5%
Payment ($300)
PV ($5,000)
FV $30,000

Periods 67.620660214
u need now?

terest rate of 5%, how much will you have in 10 years?

month and interest compunds 12 times per year. How long will it take you to pay off your loan?

u pay a monthly payment of $93.22. What interest are you paying?

onthly payment?
witthdrawal $100 each year for 5 years

each year into an RRSP that will earn an average of 7.5% per year, how much will you have after 30 years?

house you really like is $300,000 and current interest rates are 5% over 25 Years. Can you afford this house?
an additional $00 er month untill you have the$30,000. You are going to get a interest rate of 5%. How long will it take you to save $30000
it take you to save $30000?

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