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Jonathan borrowed $10,000 at 6% annual compound interest. He agreed to repay the loan with five equal annual payments at end-of-years 1-5. How much of the annual payment is interest, and how much principal is there in each annual payment? A 12-cylinder heavy-duty diesel engine will have a guaranteed residual value of $1,000 in 5 years. Today (year 0) the equivalent worth of this engine is how much if the interest rate is 9% per year? A certain college graduate, Sallie Evans, has $24,000 in student-loan debt at the end of her college career. The interest rate on this debt is 0.75% per month. If monthly payments on this loan are $432.61, how many months will it take for Sallie to repay the entire loan? Use the rule of 72 to determine how long it takes to accumulate $10,000 in a savings account when P = $5,000 and i = 10% per year. Rule of 72: The time (years) required to double the value of a lump-sum investment that is allowed to compound is approximately 72 dividedby annual interest rate (as a %) In 1972, the maximum earnings of a worker subject to Social Security tax (SST) was $9,000. The maximum earnings subject to SST in 2012 is $110, 100. What compound annual increase has been experienced over this 40-year period of time? How compare with a 3% annual increase in the consumer price index over this same period of time

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