1.After placing $8000 in a savings account paying annual compound interest of 8% calculate the amount that will accumulate if it is left for 8 years?
2.If you deposit $17000 today in an account earning an annual rate of return of 10% how much interest would be earned in the third year? How much would this amount differ from simple interest?
3.To pay for your education you have taken out $28000 in student loans. If you make monthly payments over 13 years at 5% compounded monthly how much are your monthly student loan payments?
4.What is the present value of a $650 perpetuity discounted back to the present at 10%? What is the present value of the perpetuity?
5.How much do you have to deposit today so that beginning 11 years from now you can withdraw $9000 a year for the next 8 years (periods 11 through 18) plus an additional amount of $18000 in the last year (period 18)? Assume an interest rate of 6%.