Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A) Anna is borrowing $19,700 from her parents today at an interest rate of 4.2%. she will make monthly payments of $325 starting October 17,

A) Anna is borrowing $19,700 from her parents today at an interest rate of 4.2%. she will make monthly payments of $325 starting October 17, 2020, to repay the loan. how many payments will be necessary? round to whole number

B)Nathan is preparing to make his first monthly contribution of $781 today to prepare for retirement. his retirement goal is $609,000 and he hopes to earn 9.4% interest, how many contributions will it take? round to whole number

C) Maddy is ready for retirement from Quanta. Quanta's plan is 144 monthly payments of $2,059, starting today. if her discount rate is 10.2%, what is the minimum she would take as a lump sum instead?

D) Kathy is making her first contribution of $995 today and plans to make her last one on august 17, 2045. if her retirement account earns 7.9% interest, how much will be in her account on September 17, 2045?

E)Lam Research has two retirement plans. one is the lump sum distribution of $233,300 paid upon retirement. the other is the 13 years of monthly payments, with the first of the 156 payments made one month after retirement. what is the implied interest rate?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

Define internal controls.

Answered: 1 week ago

Question

7 Describe the role of an HR business partner

Answered: 1 week ago

Question

5 Explain the concept of the psychological contract.

Answered: 1 week ago