91Ó°ÊÓ

Find the periodic payments necessary to accumulate the amounts given in Exercises \(7-12\) in a sinking fund. (Assume end-of-period deposits and compounding at the same intervals as deposits.) \(\$ 20,000\) in a fund paying \(5 \%\) per year, with monthly payments for 5 years, if the fund contains \(\$ 10,000\) at the start

Compute the specified quantity. Round all answers to the nearest month, the nearest cent, or the nearest \(0.001 \%\), as appropriate. Simple Loans You take out a 6 -month, \(\$ 5,000\) loan at \(8 \%\) simple interest. How much would you owe at the end of the 6 months?

Compute the specified quantity. Round all answers to the nearest month, the nearest cent, or the nearest \(0.001 \%\), as appropriate. Simple Loans Your total payment on a 4 -year loan, which charged \(9.5 \%\) simple interest, amounted to \(\$ 30,360\). How much did you originally borrow?

Determine the periodic payments on the loans given: \(\$ 100,000\) borrowed at \(5 \%\) for 20 years, with quarterly payments

Six years ago, I invested some money in Dracubunny Toy Co. stock, acting on the advice of a "friend." As things turned out, the value of the stock decreased by \(5 \%\) every 4 months, and I discovered yesterday (to my horror) that my investment was worth only $$\$ 297.91.$$ How much did I originally invest?

Your pension plan is an annuity with a guaranteed return of \(4 \%\) per year (compounded quarterly). You can afford to put \(\$ 1,200\) per quarter into the fund, and you will work for 40 years before retiring. After you retire, you will be paid a quarterly pension based on a 25 -year payout. How much will you receive each quarter?

Housing prices have been rising \(6 \%\) per year. A house now costs $$\$ 200,000.$$ What would it have cost 10 years ago?

Jennifer's pension plan is an annuity with a guaranteed return of \(5 \%\) per year (compounded monthly). She can afford to put \(\$ 300\) per month into the fund, and she will work for 45 years before retiring. If her pension is then paid out monthly based on a 20 -year payout, how much will she receive per month?

You take out a 15 -year mortgage for \(\$ 50,000\). at \(8 \%\), to be paid off monthly. Construct an amortization table showing how much you will pay in interest each year, and how much goes toward paying off the principal. HINT [See Example 7.]

You take out an adjustable rate mortgage for \(\$ 100,000\) for 20 years. For the first 5 years, the rate is \(4 \%\). It then rises to \(7 \%\) for the next 10 years, and then \(9 \%\) for the last 5 years. What are your monthly payments in the first 5 years, the next 10 years, and the last 5 years? (Assume that each time the rate changes, the payments are recalculated to amortize the remaining debt if the interest rate were to remain constant for the remaining life of the mortgage.)