Finance Questions with Answers

Finance Questions with Answers
You are interested in saving money for your first house. Your plan is to make regular deposits into an
account that will earn 10.20% per year. Your first deposit of $3,500 will be made today. You also plan to
make additional deposits at the end each of the next 7 years of $2,000. How much money will be in your
account after making your final deposit? - correct answers>>1. Find Fv of 3500

- PV=-3500

- N=7

- I=10.20

- P/Y=1



FV= 6907.79



2. Find FV of payments

- PMT=2000

- N=7

- P/Y=1

- I=10.20



FV=19,091.27



3. Add together

(6907.79+19,091.27) = 25,999



*25,999*



What is the required monthly payment on a $350,000 mortgage? Assume a standard mortgage (360
months) with monthly payments. Use a nominal rate of 6.90%. - correct answers>>PV = -350,000

N= 360 (30x12)

P/Y= 12

I= 6.90%

, PMT= 2305



*2305*



You want to save $98,000 to buy an boat by making an equal, end of year payment into a brokerage
account for the next 9 years. If you expect to earn an annual interest rate of 7.75% on your account, how
much do you need to deposit each year into your account? - correct answers>>*7930*



FV= 98000

I= 7.75

N= 9

P/Y= 1



PMT= 7930



What is the remaining balance on a $225,000 mortgage after 95 months? The mortgage is a standard
mortgage (360 months) with monthly payments and a nominal rate of 6.90%. - correct answers>>P/Y= 12

N= 30x12 = 360

PV= -225,000

I= 6.90



1. Find PMT

= 1481.85



2.

1 [INPUT], 95 [SHIFT] AMORT, = x 3



Balance = 201,315