A. You expect to receive $28,000 at graduation in two years. You plan on investing it at 9.75 percent until you have $163,000. How long will you wait from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Period __________ years

B. An investment offers to quadruple your money in 36 months (dont believe it). What rate per year are you being offered? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Rate ________%

C. You need $91,000 in 11 years. If you can earn .58 percent per month, how much will you have to deposit today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Deposit today $ _________

D. You want to buy a new sports coupe for $75,300, and the finance office at the dealership has quoted you a loan with an APR of 7.7 percent for 36 months to buy the car. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Monthly payment $ __________ What is the effective annual rate on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual rate %____________

E. You are to make monthly deposits of $800 into a retirement account that pays an APR of 9.8 percent compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 31 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Retirement account value in 31 years $ ________

F. Beginning three months from now, you want to be able to withdraw $3,700 each quarter from your bank account to cover college expenses over the next four years. If the account pays .77 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Amount needed $ __________

G. Youve just joined the investment banking firm of Dewey, Cheatum, and Howe. Theyve offered you two different salary arrangements. You can have $7,800 per month for the next two years, or you can have $6,500 per month for the next two years, along with a $35,000 signing bonus today. Assume the interest rate is 6 percent compounded monthly. If you take the first option, $7,800 per month for two years, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ _________ What is the present value of the second option? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ __________

H. You have just purchased a new warehouse. To finance the purchase, youve arranged for a 37-year mortgage loan for 75 percent of the $3,370,000 purchase price. The monthly payment on this loan will be $17,000. What is the APR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) APR %__________ What is the EAR on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) EAR %____________

I.

Consider the following cash flows:

Year	Cash Flow
2		$	21,800
3			39,800
5			57,800

Assume an interest rate of 8.6 percent per year. If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ __________ If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ ___________