What is the future value of $1,200 per month for 20 years at 8 percent interest, compounded monthly?
As the winner of a special lottery you will receive $8,000,000 a year forever. When you are no longer able to receive the monthly amounts (i.e. you are dead) your heir will into infinity. You need cash now so you call JG Wentworth to see what they will offer you. They will pay you $25,000,000 now. What rate are you being charged on this "loan"?
You would like to fund a scholarship in 11 years. Interest rates are 5%. The annual payout is expected to be $6,000 per year forever starting in year 11. How much do you have to deposit today to make that a reality?
While budgeting for a new home to purchase you determine you can make a $25,000 downpayment. The house you like costs $179,000. What is your monthly payment for a 15 year mortgage with a 3% interest rate?
What annual interest rate do you have to earn to withdraw $20 a month from an account with $1500 in it forever?
What annual interest rate do you have to earn to withdraw $73 a year from an account with $1600 in it forever?
You borrow $245,000 to buy a house. The mortgage rate is 4.5 percent and the loan period is 30 years. Payments are made monthly. If you pay the mortgage according to the loan agreement, how much total interest will you pay?
What is the future value of $100 a month for 41 years, beginning today at 8 percent interest? Assume monthly compounding.
What is the future value of $100 a month for 48 years at 8 percent interest? Assume monthly compounding.
What is the future value of $1,200 a year for 46 years at 8 percent interest? Assume annual compounding.
You just won the grand prize in a national writing contest! As your prize, you will receive $7,000 a year, beginning today, for ten years. If you can earn 7 percent on your money, what is this prize worth to you today?