Time value of money 6 questions Due 3/5/2017

Finding the required interest rate
Your parents will retire in 28 years. They currently have $270,000 saved, and they think they will need $2,200,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
 %

Time for a lump sum to double
If you deposit money today in an account that pays 12.5% annual interest, how long will it take to double your money? Round your answer to two decimal places.
 years

Time to reach a financial goal
You have $39,682.12 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $200,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.
 years


Future value: annuity versus annuity due
a. What's the future value of a 10%, 5-year ordinary annuity that pays $100 each year? Round your answer to the nearest cent.
$ 
b. If this was an annuity due, what would its future value be? Round your answer to the nearest cent.
$ 
Present and future values of a cash flow stream
An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6.
a. If other investments of equal risk earn 5% annually, what is its present value? Round your answer to the nearest cent.
$ 
b. If other investments of equal risk earn 5% annually, what is its future value? Round your answer to the nearest cent.


Loan amortization and EAR
You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 12% with interest paid monthly.
a. What will be the monthly loan payment? Do not round intermediate steps. Round your answer to the nearest cent.
$ 
b. What will be the loan's EAR? Do not round intermediate steps. Round your answer to two decimal places.
 %