You took out a loan to buy a new car. The monthly interest rate on the...

You took out a loan to buy a new car. The monthly interest rate on the loan is 1%. You have to pay $270 every month for 60 months.

Attempt 1/5 for 8 pts. Part 1 What is the present value of the cash flows if it's an ordinary annuity?

Attempt 1/5 for 8 pts. Part 2 What is the future value of the cash flows if it's an ordinary annuity?

Attempt 1/5 for 10 pts. Part 3 What is the present value of the cash flows if it's an annuity due?

Attempt 1/5 for 8 pts. Part 4 What is the future value of the cash flows if it's an annuity due?

You just turned 21 years old and want to retire when you turn 65. You plan to put $4,700 every year into a ROTH IRA, a retirement account from which you can withdraw money after retirement without having to pay any taxes. You expect to earn a return of 6% on your investments every year.

How much money can you expect to have at age 65 if you make your first deposit now and your last one on the day you turn 64?

You took out some student loans in college and now owe $12,000. You consolidated the loans into one amortizing loan, which has an annual interest rate of 4% (APR).

If you make monthly payments of $200, how many months will it take to pay off the loan? Fractional values are acceptable.

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jeff jeffy answered 8 months ago

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