# Finance Problems – Future Value. What is the future value of

August 14, 2017

1. Future Value. What is the future value of a. \$773 invested for 14 years at 11 percent compounded annually? b. \$210 invested for 7 years at 6 percent compounded annually? c. \$650 invested for 10 years at 9 percent compounded annually? d. \$615 invested for 7 years at 14 percent compounded annually?2. Present Value. What is the present value of a. \$803 to be received 10 years from now at a 15 percent discount rate? b. \$406 to be received 6 years from now at a 5 percent discount rate? c. \$300 to be received 10 years from now at a 9 percent discount rate? d. \$632 to be received 14 years from now at a 14 percent discount rate? 3. Future Value of an Annuity. What is the future value of a. \$557 a year for 14 years at 5 percent compounded annually? b. \$748 a year for 8 years at 10 percent compounded annually? c. \$442 a year for 8 years at 12 percent compounded annually? d. \$976 a year for 12 years at 5 percent compounded annually? 4. Present Value of an Annuity. What is the present value of a. \$1,163 a year for 15 years at an 8 percent discount rate? b. \$329 a year for 7 years at a 15 percent discount rate?c. \$365 a year for 10 years at a 10 percent discount rate? d. \$883 a year for 6 years at a 5 percent discount rate? 5. How many years will it take to grow a. \$711 to a value of 2,028.19 at a compound rate of 14 percent? b. \$321 to a value of 450.22 at a compound rate of 7 percent? c. \$931 to a value of 1,305.78 at a compound rate of 7 percent? d. \$1,191 to a value of 4,189.79 at a compound rate of 15 percent? 6. Interest Rate. At what interest rate will it take to grow a. \$759 to a value of 1,017.13 over 6 years? b. \$614 to a value of 1,082.08 over 5 years? c. \$701 to a value of 1,311.16 over 6 years? d. \$1,190 to a value of 4,163.16 over 12 years? 7. Annuity. How many years will it take for a payment of a. \$825 to grow to 17,642.03 at a compound rate of 10 percent? b. \$356 from a future value of 13,271.58 at a compound rate of 12 percent? c. \$1,098 from a future value of 6,189.53 at a compound rate of 6 percent? d. \$733 from a future value of 14,365.80 at a compound rate of 5 percent? 8. Annuity. At what interest rate will a payment of a. \$346 grow to 12,898.78 over a period of 15 years? b. \$1,056 grow to 10,834.35 over a period of 8 years? c. \$696 grow to 22,113.65 over a period of 15 years? 9. Car Loans (Hint: P/Y=12). How much is a car loan with a payment ofa. \$257 per month for 3 years at 6% interest per year? b. \$437 per month for 5 years at 15% interest per year? c. \$274 per month for 6 years at 7% interest per year? d. \$253 per month for 2 years at 7% interest per year? 10. Car Loans (Hint: P/Y=12). How many months will you pay on a car loan of a. \$18,708 with a payment of 406.76 per month at 11% interest per year?b. \$10,112 with a payment of 276.33 per month at 14% interest per year? c. \$32,705 with a payment of 1,101.96 per month at 13% interest per year? d. \$34,136 with a payment of 1,638.97 per month at 14% interest per year? 11. Car Loans (Hint: P/Y=12). What is the interest rate on a loan of a. \$8,000 with a payment of 218.61 per month for 4 years? b. \$16,000 with a payment of 368.47 per month for 4 years? c. \$24,000 with a payment of 521.82 per month for 5 years? d. \$32,000 with a payment of 664.27 per month for 5 years? 12. Mortgages (Hint: P/Y=12, House cost = Loan Value/0.9). What is the house cost on a 10 percent down mortgage with payments of a. \$4,369.66 per month for 30 years at 10 percent interest? b. \$1,626.83 per month for 15 years at 11 percent interest? c. \$3,724.21 per month for 30 years at 8 percent interest? d. \$4,469.19 per month for 15 years at 14 percent interest? 13. Mortgages (Hint: P/Y=12). What is the interest rate on a mortgage of a. \$863,001 with a payment of 5,174.13 for 30 years? b. \$125,709 with a payment of 1,275.02 for 15 years? c. \$546,227 with a payment of 6,906.73 for 30 years? d. \$478,167 with a payment of 3,781.31 for 15 years? 14. Mortgages (Hint: P/Y=12). What is the payoff on a 30 year, 6% mortgage of a. \$255,413 with a payment of 1,531.33 with 7 years remaining? b. \$530,493 with a payment of 3,180.57 with 9 years remaining? c. \$297,266 with a payment of 1,782.26 with 13 years remaining? d. \$108,947 with a payment of 653.19 with 13 years remaining?