Question
1.You need to have $24,956 available at the end of 10 years. How much to do you have invest each year, starting at the end
1.You need to have $24,956 available at the end of 10 years. How much to do you have invest each year, starting at the end of this year, for 10 years to achieve this goal if the interest rate is 11%? (Enter your answer as a positive number rounded to 2 decimal places.)
2.
Franklin Templeton has just invested $10,360 for his son (age one). This money will be used for his sons education 17 years from now. He calculates that he will need $44,848 by the time the boy goes to school. What interest rate does Mr. Templeton need to earn in order to achieve this goal? (Round your final answer to 2 decimal places. For example, enter .1245 as 12.45)
3.Assume you have a total of $44,500 to invest and want to receive an annuity of $6,200 for 20 years. What interest rate do you have to earn on the $44,500 investment in order to receive the annual payments? (Round your answer to 2 decimal places. For example, enter .1234 as 12.34)
4.
Larry Davis borrows $88,000 at 12 percent interest toward the purchase of a home. His mortgage is for 30 years.
a. If Larry decides to make annual payments, how much will they be? (Enter your answer as a positive number rounded to 2 decimal places.)
b. How much interest will he pay over the life of the loan? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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