Fin 100 Homework 2
Week 4 Homework Chapter 9E1, P2, P3, P4, P5, P7, P16, P17, P19Kandy Downs FIN 100E1 – A.On www.federalreserve.gov, the current interest rates on loans given by commercial banks are; new auto loans for 48 months at 4.31%, personal loans for 24 months at 9.69%, and credit cards at 12.04%. New auto loans seem to be the lowest of the three on interest rates but it has a longer term than a personal loan so it appears that a person would pay out just as much interest on a 2% year personal loan as they would on 4 year car loan. Credit cards are the highest due to be a revolving account. The principal is not set and can change monthly depending on charges and payments.B.After searching through the historical data of interest rates from www.federealreserve.gov, it appears that all three average interest rates have been slowly falling over the past three years.P2. Find the FV of $10,000 invested now after five years if the annual interest rate is 8 percent.
FIN100 Principles of Finance Week 6 Homework 2 Bob and Lisa are both married, working adults. They both plan for re±rement and consider the $2,000 annual contribu±on a must. First, consider Lisa’s savings. She began working at age 20 and began making an annual contribu±on of $2,000 at the ²rst of the year beginning with her ²rst year. She makes 13 contribu±ons. She worked un±l she was 32 and then le³ full ±me work to have children and be a stay at home mom. She le³ her IRA invested and plans to begin drawing from her IRA when she is 65. Bob started his IRA at age 32. The ²rst 12 years of his working career, he used his discre±onary income to buy a home, upgrade the family cars, take vaca±ons, and pursue his gol²ng hobby. At age 32, he made his ²rst $2,000 contribu±on to an IRA, and contributed $2,000 every year up un±l age 65, a total of 33 years / contribu±ons. He plans to re±re at age 65 and make withdrawals from his IRA.