BUSI 223 BUSI223 Exercise 2 (Liberty)
BUSI 223 Exercise 2
1. I want to be able to buy a car with cash in 4 years. I have $10,000 that I can invest today. I can get a bond earning 4%. How much will I have for the purchase?
2. I want to buy a house in 5 years. I need to have a down payment of $50,000. How much do I need to have today in order to have the down payment, if I can earn 5%?
3. I just graduated from school with $25,000 worth of debt. I want to know what my monthly payment is going to be. I was able to finance it over 10 years at 2%.
4. I have a standard 30-year mortgage and want to pay off my mortgage early. My loan is for $200,000 at 4.5%. How many months would it take me to pay it off, if I paid $1,200 every month?
5. I want to have $50,000 for my daughter’s college in 18 years. If I can afford to put away $1000 a year, what interest rate would I need to get?
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