You are purchasing a house for $225,000 and making a down payment of $25,000.  You will finance the loan over 15 years with monthly payments at an interest rate of 4.5%.  What is your monthly payment?

Your best friend has asked you how much she can accumulate in her retirement account if she continues to invest $400 per month for the next 40 years.  She tells you to use a 12% rate of return.  She wants you to include the $30,000 she already has in the account.  How much will she accumulate?  

You made an investment of $10,000 and received the following annual cash flows: CF 1 = $2,000 CF 2 = $3,000 CF 3 = $4,000 CF 4 = $5,000 CF 5 = $6,000 What rate of return did you earn?  Enter your answer in decimal format using for decimal places.  For example, 3.25% would be entered as .0325.

Your best friend has asked you how much she can accumulate in her retirement account if she continues to invest $400 per month for the next 40 years.  She tells you to use a 12% rate of return.  She wants you to include the $40,000 she already has in the account.  How much will she accumulate?  

You want to retire at age 60 and you expect to live 27 years.  You would like to receive $10,000 at the beginning of each month starting on your 60th birthday.  You estimate that you can earn 9% on your retirement investments.  How much do you need in your account on your 60th birthday?

You are purchasing a house for $225,000 and making a down payment of $25,000.  You will finance the loan over 15 years with monthly payments at an interest rate of 3.5%.  What is your monthly payment?

You will invest the following annual cash flows at 10%. CF 1 = $2,000 CF 2 = $3,000 CF 3 = $4,000 CF 4 = $5,000 CF 5 = $6,000 How much will you have at the end of year 5?

You work for a man that purchased a Monet painting in 1980 for $200,000.  He just sold the painting at the end of 2020 for $4,000,000.  Assume full years.  What rate of return did he earn?  Enter your answer in decimal format using for decimal places.  For example, 3.25% would be entered as .0325.

You are borrowing $500,000 to purchase a commercial building.  The interest rate is 5% and the loan will be over ten years with monthly payments.  There is a $10,000 origination fee you will have to pay at the closing of the loan.  What is the APR (true cost of financing) of the loan?  Enter your answer in decimal format using for decimal places.  For example, 3.25% would be entered as .0325.

You have been offered the “opportunity” to finance a business for your brother-in-law.  He has promised you the following annual payments: CF 1 = 5000 CF 2 = 5000 CF 3 = 7000 CF 4 = 8000 CF 5 = 9000 Your required rate of return is 15%.  What is the most you can pay for the investment and still earn your required rate of return?