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1. Maybepay Life Insurance Co. is selling a perpetual contract that pays $2,416/ year. The contract currently sells for $168,302. What is the rate of
1. Maybepay Life Insurance Co. is selling a perpetual contract that pays $2,416/ year. The contract currently sells for $168,302. What is the rate of return on this investment? Enter answer as 4 decimals (e.g. 0.1234). A. You are to make monthly deposits of $462 into a retirement account that pays 4 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 14 years? B. You expect to graduate with $11,021 in student loans. The interest rate on your loan is 7.7 percent compounded monthly and the loan calls for fixed monthly payments. If you repay the loan in 24 years how much are you paying in total interest over the life of the loan? (HINT: you need to calculate the monthly payment first). C. You are excited to buy your first house. Based on your credit history, the bank is willing to lend you money at 5 percent interest compounded monthly. You can afford monthly payments of $806. How much can you afford to borrow? Assume the mortgage is for 17 years
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