Question
1) You want to be able to withdraw $30,000 each year for 20 years. Your account earns 10% interest. a) How much do you need
1) You want to be able to withdraw $30,000 each year for 20 years. Your account earns 10% interest. a) How much do you need in your account at the beginning? $? b) How much total money will you pull out of the account? $? c) How much of that money is interest? $?
2) You can afford a $1350 per month mortgage payment. You've found a 30 year loan at 8% interest. a) How big of a loan can you afford? $? b) How much total money will you pay the loan company? $? c) How much of that money is interest? $?
3) You want to buy a $14,000 car. The company is offering a 3% interest rate for 48 months (4 years). What will your monthly payments be? $?
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