Question
1.) The Flemings will need $80,000 annually for 20 years during retirement. How much will they need at retirement if they can earn a 4%
1.) The Flemings will need $80,000 annually for 20 years during retirement. How much will they need at retirement if they can earn a 4% rate of return? (Show all work) 2.) Gordon and Susan have a regular savings plan and have accumulated $8,000. How much will this be worth in I0 years if they can earn 2% on the money. They are not planning to add to this savings account. (Show all work.) 3.) Patrick would like to know the monthly payments and the total finance charges on the following 2 loans: (Show all work.) a. $30,000, 9%, 36 months b. $30,000, 9%, 48 months
4.) Jamil is purchasing a new truck for $30,000. Jamil is making a $2,000 down payment, and he will make 60 monthly payments of $541 each. What are the total finance costs on this loan? (Show all work)
5.) George and Nancy had a $30,000 repair bill on their home after the tornado went through town. Their policy contained the usual 80% co-insurance clause. Their home's replacement value was $150,000; their policy coverage was $110,000 with a $250 deductible.
a. How much insurance should they have carried to meet the coinsurance obligation? b. What percentage of this loss will the insurance company pay? c. How much of the loss will George and Nancy have to absorb? (Show all work.)
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