financial calculator 1

AD 632 Financial Concepts

Non-CONNECT Homework

Financial Calculator

1)Abby wants to purchase a new car that will cost $24,000. She will make a down payment of $2,500 and will borrow the rest. The annual interest rate on the loan is 4.65%. The monthly principle and interest payments will be $350.00. How many monthly payments will Abby have to make to pay off the car loan?

Which model financial calculator are you using___________________________

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2)Judy needs to purchase some new appliances for her new condo. The appliances will cost $1,640. The store is offering a special for the financing of the appliances. The terms are 24 months with a minimum monthly payment of $90. What annual interest rate is Judy being charged?

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3)Steven wants to save for a family vacation in 3 years. The cost of the vacation will be $16,500. He plans to invest in a mutual fund that will earn 7.2% annually. To reach his goal, how much does Steven need to invest today?

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4)Meredith wants to begin a retirement savings account. She plans on retiring in 42 years and wants to accumulate $2,200,000 by the time she retires. If she is just beginning her savings and can earn 9.2% on her investments, how much will she need to save each month?

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5)Wil just learned that 72 years ago his aunt left him $7,500 in an investment which paid 4.8% annual interest. What is the value of that investment today?

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6)Aubrey has an opportunity to invest $10,000 in a Certificate of Deposit (CD) that will pay her 2.78% annually. When the CD matures in 6 years, how much will Aubrey receive? Note: CD’s only pay interest at the end of the period.

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7)Assume the same facts as in 6) above, except the interest will be compounded semi-annually. When the CD matures in 6 years, how much will Aubrey receive?

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8)Assume the same facts as in 6) above, except the interest will be compounded monthly. When the CD matures in 6 years, how much will Aubrey receive?

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9)Evan purchased a house and obtained a $380,000 fully amortized level payment 15-year mortgage. The mortgage’s annual interest rate is 4.82%. What will be Evan’s monthly blended principal and interest payment?

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10) Using the information from 9) above, determine how much of the total payment is principal? And how much of the total payment is interest? Prepare the amortization table for months 1, 2, and 3

Beginning

Amortization

Ending

Month

Principal

Payment

Interest

of Principle

Principle

1

2

3

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