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.