Question
1.Several years ago, Bill Smith borrowed $125,000 to buy his house. He has a 15 year, monthly payment mortgage with an interest rate of 8.75
1.Several years ago, Bill Smith borrowed $125,000 to buy his house. He has a 15 year, monthly payment mortgage with an interest rate of 8.75 percent per annum. Bill is thinking about refinancing his house so he would like to know the payoff on his current loan. Assuming that he just made payment number 121 , compute the payoff on Bill's loan. (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign). .......2.I plan to deposit $ 125 into my retirement every year for the next 25 years. The first deposit will be made today (that is, at t = 0) and the last deposit will be made at the end of year 24 (that is, at t = 24). I plan to make no other deposits. Assuming that I will earn 11.26 % p.a. on my retirement funds, how much money will I have accumulated 36 years from today (that is, at t = 36)? (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).
3.Sam refuses to retire until his retirement account has a balance of at least $ 333,810 . Sam refuses to make any more deposits in the account. The account currently has a balance of $ 126,036 and earns 6% per year, compounded semi-annually. How long does Sam have before he will retire? (You are computing number of years. Round your answer to one decimal place. For example, record 14.294 years as 14.3).
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