Derek decides to buy a new car. The dealership offers him a choice of paying $528.00 per month for 5 years (with the first payment due next month) or paying some $28,283.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options?

Requirements: till my answers are correct

Derek decides to buy a new car. The dealership offers him a choice of paying $528.00 per month for 5 years (with the first payment due next month) or paying some $28,283.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options?

Derek wants to withdraw $11,338.00 from his account 6.00 years from today and $12,078.00 from his account 10.00 years from today. He currently has $3,690.00 in the account. How much must he deposit each year for the next 10.0 years? Assume a 6.00% interest rate. His account must equal zero by year 10.0 but may be negative prior to that.

Top of Form

Bottom of Form

Derek currently has $11,240.00 in an account that pays 5.00%. He will withdraw $5,618.00 every other year beginning next year until he has taken 4.00 withdrawals. He will deposit $11240.0 every other year beginning two years from today until he has made 4.0 deposits. How much will be in the account 30.00 years from today?

Top of Form

Bottom of Form

#4

Derek can deposit $223.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 15.00% and compounds interest monthly. Derek can deposit $2,568.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years?

Top of Form

Bottom of Form

Assume the real rate of interest is 2.00% and the inflation rate is 5.00%. What is the value today of receiving 12,136.00 in 9.00 years?

Derek borrows $35,500.00 to buy a car. He will make monthly payments for 6 years. The car loan has an interest rate of 5.13%. After a 10.00 months Derek decides to pay off his car loan. How much must he give the bank?

Suppose you deposit $1,017.00 into an account 6.00 years from today that earns 12.00%. It will be worth $1,962.00 _____ years from today.

#4 

Assume a bank offers an effective annual rate of 5.87%. If compounding is monthly what is the APR?

Suppose you deposit $1,027.00 into an account 4.00 years from today. Exactly 17.00 years from today the account is worth $1,472.00. What was the account’s interest rate?