Question

Please answer them correctly. Here are short 4 problems. Please solve all 4 problems. I would really appreciate your effort. Thanks.

1. Margaret Moore is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $3,900 every year in an IRA account, beginning at the end of this year until she reaches the age of 65. If the IRA investment will earn 11.35 percent annually, how much will she have in 40 years, when she turns 65? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)

Future Value of investment $_____?

2. Jennifer Davis is a sales executive at a Baltimore firm. She is 25 years old and plans to invest $3,100 each year in an IRA account until she is 65 at which time she will retire (a total of 40 payments). If Jennifer invests at the beginning of each year, and the IRA investment will earn 11.40 percent annually, how much will she have when she retires? Assume that she makes the first payment today. (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)

Future value of investment $______?

3. Joseph Moore borrowed $15,550 from a bank for three years. If the quoted rate (APR) is 8.90 percent, and the compounding is daily, what is the effective annual interest rate (EAR)? (Round answer to 2 decimal places e.g. 15.25%. Use 365 days for calculation.)

Effective Annual interest rate ______%?

4. Sunland Productions borrowed some money from the California Finance Company at a rate of 15.40 percent for a seven-year period. The loan calls for a payment of $1,541,000 each year beginning today. How much did Sunland borrow? (Round factor values to 4 decimal places, e.g. 1.5214 and final answer to nearest whole dollar, e.g. 5,275.)

Sunland borrowed $_____?

Answer 1