1. E1
Go to the Federal Reserve Web site http://www.federalreserve.gov. Click on the Consumer Information tab and research consumer credit in the various hyperlinks. Find average interest rates charged by commercial banks on new automobile loans personal loans and credit card plans.
2.
Find the FV of $10000 invested now after five years if the annual interest rate is 8 percent.
3.
Determine the future values (FVs) if $5000 is invested in each of the following situations:
4.
You are planning to invest $2500 today for three years at a nominal interest rate of 9 percent with annual compounding.
5.
Find the present value (PV) of $7000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate the PV if the $7000 is received after two years.
7.
Determine the present value (PV) if $15000 is to be received at the end of eight years and the discount rate is 9 percent. How would your answer change if you had to wait six years to receive the $15000?
16.
Use a financial calculator or computer software program to answer the following questions:
17.
Use a financial calculator or computer software program to answer the following questions:
19.
Use a financial calculator or computer software program to answer the following questions.
