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Question 1: (10 Points)Calculate the future value of an investment of $1,000, after 6 months, earning 6% APR, compounded monthly, by compounding manually. Reminder: Be sure to show your work, and to calculate the period interest before solving.Question 2: (10 Points)Find the future value of a $150,000 Certificate of Deposit that pays compounded interest every six months at the rate of 4% per year. The CD has a term of 5 years.Calculate the FV (Future Value) using the “Future Value or Compound Amount of $1.00” table in your textbook.Calculate the FV (Future Value) using the formula: FV = P(1 + R)NHow much interest was earned on the investment? Question 3: (10 Points)You inherit $200,000 and decide to invest it for 28 days compounded daily at 6% annual interest. After the 28 days, you are going to invest your new found money in a startup business. How much interest is earned on this investment?How much money will you have to invest in the startup after the 28 days?Question 4: (10 Points)How much money must be invested into an account paying 6% annually, compounded annually, to have $500,000 in 25 years when I retire? Calculate the PV (Present Value) using the “Present Value of $1.00” table in your textbook.Calculate the PV (Present Value) using the formula: PV = FV / (1 +R)NHow much interest did you earn over the life of the investment?Question 5Unit 4 focus on interest and loan concepts, which is covered in your reading of Chapter 12: “Consumer Credit.”For this Assignment you will write an essay to address the requirements described below. Your essay must be carefully planned and written using well-constructed sentences and paragraphs. Make sure that your grammar and spelling are correct. Points will be awarded for content as well as composition. Your essay must be a minimum of 1 page in length with standard 1 inch margins and is required to have at least one reference from a reliable source. This means that you cannot use sites like Wikipedia, Ask.com®, and Yahoo® answers and that only references from reliable sources will earn points. All resources should be cited both as an in-text citation as well as being listed on a reference page in APA format.Assignments must be submitted as a Microsoft® Word® document and uploaded to the Dropbox for Unit 4. Include your essay directly in this document following the instructions. Essay Assignment (40 points)Your Assignment is to write an essay discussing the financing of a new car for your business. The price of the used car is $20,000. Sales tax on this car is 8.4% of the price of the vehicle. You intend to finance the entire cost of the car and sales tax, less a down payment of $1,500. You intend to finance the car for 48 months and your car payment will be $455.12 per month. Your essay should in include the following informationCalculate and discuss the amount financed, the installment price of the new car, and the finance charges you will pay over the life of the loan. Compare and contrast the advantage of paying cash and financing the vehicle over a shorter period of time, as well as, the impact of finding lower interest rates. Research and discuss the advantages of having good credit versus poor credit when qualifying for a loan. Discuss the implications of your credit score on the interest rates you may qualify for. Your essay should be complete and cover each point as outlined above. Be sure to include at least one text citation.
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  1. EricGuru
    Tutorial # 00061740 Posted By: EricGuru Posted on: 04/30/2015 01:04 AM
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    The solution of Math Assignment 2...
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