1. 4.06%
2. $1600
3. $639.02
4. $1,584.26
5. $373,107.71
6. $17,993.32
7. $472.41
8. $103,150.83 is the largest possible loan.
They will pay $100,849.17 in interest.
9. Largest possible mortgage is $106,449.68.
Amount of interest is $148,550.32.
Interest per $1 of loan is $1.40.
10. $707.65
11. $1653.70
12. Interest rate Amount of payment
============= =================
6% $299.78
7% $332.65
8% $366.88
9% $402.31
10% $438.79
13. Value in 1990 with 5% interest is $16,008,907.08.
Value in 1990 with 6% interest is $401,785,435.74.
Increase is a factor of 24.0976, or 2409.76%.
14. (1+.005)^12 = 1.06168. Therefore, one dollar which increases
at .5% monthly, compounded monthly for a year, gives approximately
$1.062, corresponding to an annual rate of 6.2%.
15. The salary of $3400 per month plus bonus.
16. Amount $69,770.03, present value = $51,725.56
17. $11,284.79.
18. Use formula 9.8 to verify the entries in the table.
19. $2576.56.
20. 144.4% in 2 years, or 72.2% per year.