1. You plan to set up a retirement account which will be worth $500,000. You hope to retire in 20 years. If you can earn 10% annually, what will your quarterly payment need to be? 2. You are going to buy a large screen T. V. with a total price out the door of $5,000. If you are going to finance it and you are required to make a 20% down payment and pay 24% interest per year for two years, how much will your monthly payments be?
3. If inflation is expected to be 5% on the average for the next 20 years, what will you have to pay for a $1.79 loaf of bread then?
4. You made $4,536 worth of purchases on your Visa card. If you can pay $70 per month, approximately how many years will it take you to fully pay off your debt if they are charging you 18% interest per year?
5. If you deposit $45,000 into an account earning 4% interest compounded quarterly, How much would you have in 5 years?
6. You have $450,000 to invest. If you think you can earn 7% annually compounded quarterly, approximately how much would you have in 10 years?
7. You borrow $50,000 and will make monthly payments for 2 years at 12% interest. About how much will those payments be?
8. You invest $250 per month in an IRA each year for 32 years. If interest on this IRA is 9% per year, approximately how much will you have at the end of those 32 years?