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A) You save for retirement over 30 years by investing $850/month in a stock account that yields 10%. You invest $350/month in a bond account that yields 6%. At retirement you combine both accounts into a new account that yields 5%. How much can you withdraw each month assuming a 25 year withdrawal period?

B) You want to be a millionaire when you retire in 40 years. How much do you have to save each month if you earn 10.5% per year? How much do you have to save if you wait 10 years before you start investing?

C) You wan to buy a new car for $68,000. The loan is for 60 months with payment at the beginning of the period (annuity due). The APR is 6.4%. What will the monthly payments be?

D) What is the EAR for 7% compounded quarterly, monthly, daily?

E) What is the APR when the EAR is 12.4% compounded semiannually? When the EAR is 11.7% compounded monthly? When the EAR is 9.5% compounded weekly?

F) FNB charges 12.4% compounded monthly on its business loans. First United Bank charges 12.7% compounded semi-annually. As a potential borrower, which bank would you go to for a new loan?

G) You want to buy a new sports car for $79,500 and the finance office at the dealership quoted you an APR of 5.8% for a 60 month loan. What are your monthly payments? What is the EAR?

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