Question
1. You are planning to make monthly deposits of $130 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit
1. You are planning to make monthly deposits of $130 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 26 years?
A. $192,183.65
B. $201,792.83
C. $182,574.47
D. $2,306,203.80
E. $170,323.55
2. Dinero Bank offers you a $27,000, 10-year term loan at 7 percent annual interest. |
Required: |
What will your annual loan payment be? (Do not round your intermediate calculations.) |
A. $5,530.95
B. $4,023.80
C. $3,668.43
D. $3,844.19
E. $4,113.29
You need a 20-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 240-month loan. However, you can afford monthly payments of only $850, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. |
Required: |
How large will this balloon payment have to be for you to keep your monthly payments at $850? |
A. $83,774.36
B. $361,385.74
C. $350,544.17
D. $96,888.68
E. $375,841.17
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