61. Treyhas $105,000 now. He has a loan of $175,000 that he must pay at the end of 5 years. He can invest his $105,000 at 10% interest compounded semiannually. Will Treyhave enough to pay his loan at the end of the 5 years?
62. Garcia BrassFixturesis planning on replacing one of its machines in five years by making a one-time deposit of $20,000 today and four yearly contributions of $5,000 beginning at the end of year 1. The deposits will earn 10% interest. How much money will Garciahave accumulated at the end of five years to replace the machine?
63.A company borrows money from the bank by promising to make 6 annual year-end payments of $27,000 each. How much is the company able to borrow if the interest rate is 9%?
64. A company borrows money from the bank by promising to make 8 semiannual payments of $9,000 each. How much is the company able to borrow if the interest rate is 10% compounded semiannually?
65. When you reach retirement age, you will have one fund of $100,000 from which you are going to make annual withdrawals of $14,702. The fund will earn 6% per year. For how many years will you be able to draw an even amount of $14,702?
66. City Peewee League borrowed $883,212, and must make annual year-end payments of $120,000 each. If City’s interest rate is 6%, how many years will it take to pay off the loan?
67.GiulianiCo. lends $524,210 to CraigCorporation. The terms of the loan require that Craigmake six semiannual period-end payments of $100,000 each. What semiannual interest rate is Craigpaying on the loan?
68. A company is beginning a savings plan. It will be saving $15,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 10% interest?
69. A company is beginning a savings plan to purchase a new building. It will be saving $43,000 per year for the next 10 years. How much will the company have accumulated after the tenth year-end deposit, assuming the fund earns 9% interest?
70.You are little late planning your retirement, but are looking forward to retiring in 10 years. You expect to save $6,000 a year at an annual rate of 8%. How much will you have accumulated when you retire?
71.A company is setting up a sinking fund to pay off $8,654,000 in bonds that are due in 7 years. The fund will earn 7% interest, and the company intends to put away a series of equal year-end amounts for 7 years. What is the amount of the annual deposits that the company must make?
Fill-in-the-Blank Questions
72. _____________ is a borrower’s payment to the owner of an asset for its use.
73. The interest rate is also called the __________________ rate.
74.To calculate present value of an amount, two factors are required: The __________________ and the___________________.
75. An _____________ is a series of equal payments occurring at equal intervals.
76.The future value of an ________________ annuity is the accumulated value of each annuity payment with interest as of the date of the final payment.