An individual wishes to deposit an amount of money now and $100 every six months so that at the end of five years they have $1500. With interest at 4% per year, compounded semi-annually, how much should be deposited now?
Ann would like to be a millionaire when she retires in 30 years. She would like to start with a deposit of $1000 at the end of the first year, and increase it every year by $400 thereafter. What interest rate does she need to get to be able to retired as desired?
A company uses MACRS depreciation. It has decided to purchase a mainframe computer and would like to know the depreciation schedule. You have the following data: Initial cost = $550000, Salvage value = $50000 and Property Class = 5 yr. Build a table with the MACRS% , Depreciation, Book and the Accumulated Depreciation values, $.
Amy wants to buy the house next to John. If the cost is $450,000, and she has $80,000 for a down payment, should she take out a 15 yr loan at 6% (LOAN A) or a 20 yr loan at 2% (LOAN B)? The criteria is she wants the loan that will have the LEAST interest paid over the life of the loan.
