Use any Excel spreadsheet or TVM app you wish to answer these questions. Type your answer

next to the questions, save your answers as a Word document, and submit it through Canvas.
This quiz is worth a total of 30 points.
1. (4 points) You intend to invest $6,000 over the course of a year with the hope that you
will have $150,000 15 years from now. You plan to invest each month. Which of the
following annual interest rates will be sufficient for you to get that $150,000?
a. 4.00%
b. 5.00%
c. 7.00%
d. 8.00%
2. (4 points) You think having $1.5 million saved for retirement is a good goal, and you are
planning on retiring in 40 years. How much do you have to save in the following saving
schemes if you can earn 7.5% interest over those 40 years?
a. Once per year
b. Every six months (semiannually)
c. Quarterly
d. Monthly
3. (4 points) In 40 years you have $1.5 million that will be used to fund a retirement that
you plan on lasting 25 years. How much can you live off each month over those 25 years
if annual interest rates are:
a. 3.6%
b. 4.8%
c. 6.0%
d. 7.2%
4. (4 points) Annual interest over the 25 years of your retirement is 5%. Now how much do
you need to be able to live off the following?
a. $240,000 per year
b. $120,000 every six months (semiannually)

c. $ 60,000 every quarter
d. $ 20,000 a month
5. (4 points) Find the following payments for an $80,000, 6-year, 7.5% fixed rate loan.
a. Annually
b. Semiannually
c. Quarterly
d. Monthly
6. (4 points) How much total interest was paid in the loan in problem 5 when payments
were made:
a. Annually
b. Semiannually
c. Quarterly
d. Monthly
7. (3 points) Find the Equivalent Annual Yield of an annual interest rate of 18% when
interest is compounded:
a. Semiannually
b. Quarterly
c. Monthly
8. (3 points) What are the different annual yields of the following monthly interest rates
quoted by a credit card company:
a. 1.5%
b. 2.0%
c. 2.5%