1. You have $1,395 today,

1. You have $1,395 today,

1. You have $1,395 today, and want to double your money in 7 years. What interest rate must you earn to achieve your goal?Enter rate in percents, accurate to two decimal places.2. The house you want to buy costs $260 thousand. You plan to make a cash down payment of 10 percent, and borrow the rest in a 30 year mortgage at 4.8 percent APR. What will be the amount of your monthly mortgage payment?3. You estimate that you will need $716 thousand in 30 years to buy some cybernetic body enhancements, including infrared vision, retractable claws, and expanded brain storage capacity. To achieve your financial goal, you want to make three equal-sized deposits into an account paying a fixed rate of 11.78%. The first deposit will be made right now, the second 10 years from now, and the third 20 years from now. What is the size of each deposit you need to make in order to partake of future cybernetic goodness? (Hint: draw this out on a timeline.)4. The Great White Whale Co. wants to issue zero coupon bonds with $1000 face value and 100 years to maturity. If your required return is 8.3 percent per year, how much would you be willing to pay for one of these bonds today?5. Your mortgage statement says that your loan is at 8.61 percent APR, with monthly payments. What is the effective annual rate on your mortgage (i.e., taking into account the monthly compounding)? Enter answer in percents, accurate to two decimal places.6. You are being offered an investment that will pay you (and your heirs) $19,853 per year forever, starting 16 years from now. If your discount rate on this investment is 5.8 percent, how much would you be willing to pay for it today?

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