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Finance Questions with Answers

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Finance Questions with Answers You are interested in saving money for your first house. Your plan is to make regular deposits into an account that will earn 10.20% per year. Your first deposit of $3,500 will be made today. You also plan to make additional deposits at the end each of the next 7 yea...

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  • November 9, 2024
  • 10
  • 2024/2025
  • Exam (elaborations)
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Finance Questions with Answers
You are interested in saving money for your first house. Your plan is to make regular deposits into an
account that will earn 10.20% per year. Your first deposit of $3,500 will be made today. You also plan to
make additional deposits at the end each of the next 7 years of $2,000. How much money will be in your
account after making your final deposit? - correct answers>>1. Find Fv of 3500

- PV=-3500

- N=7

- I=10.20

- P/Y=1



FV= 6907.79



2. Find FV of payments

- PMT=2000

- N=7

- P/Y=1

- I=10.20



FV=19,091.27



3. Add together

(6907.79+19,091.27) = 25,999



*25,999*



What is the required monthly payment on a $350,000 mortgage? Assume a standard mortgage (360
months) with monthly payments. Use a nominal rate of 6.90%. - correct answers>>PV = -350,000

N= 360 (30x12)

P/Y= 12

I= 6.90%

, PMT= 2305



*2305*



You want to save $98,000 to buy an boat by making an equal, end of year payment into a brokerage
account for the next 9 years. If you expect to earn an annual interest rate of 7.75% on your account, how
much do you need to deposit each year into your account? - correct answers>>*7930*



FV= 98000

I= 7.75

N= 9

P/Y= 1



PMT= 7930



What is the remaining balance on a $225,000 mortgage after 95 months? The mortgage is a standard
mortgage (360 months) with monthly payments and a nominal rate of 6.90%. - correct answers>>P/Y= 12

N= 30x12 = 360

PV= -225,000

I= 6.90



1. Find PMT

= 1481.85



2.

1 [INPUT], 95 [SHIFT] AMORT, = x 3



Balance = 201,315

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