ACCT $301$ TV of Money Problems

Due $2/23(20$ points$)$

You wish to purchase a $$300,000$ home. Putting $20\%$ down, you will borrow $$240,000$ at $6\mathrm{.}0\%,$ with monthly payments for $30$ years. How much will each payment be$?$ How much interest will be paid over the life of the loan?

What if you decide to go with a $15$ year mortgage. What will be your monthly payment and how much interest will you pay over the $15$ years?

You ran a little short on your spring vacation, so you put a $$1,500$ on your credit card. You can only afford to make the minimum payment of $$40$ per month. The interest rate on the card is $2\mathrm{.}0\%$ per month. How long will it take you to pay off the $$1,500?$ How much total interest will you pay?

You just received notice that you have won the $$30$ million Indiana Lottery. You will receive $$1,000,000$ per year for $30$ years with your first payment received today. What is the present value of these payments if the appropriate discount rate is $8\%?$

You want to buy a new F$150$ electric truck for $$50,000,$ and the finance office at the dealership has quoted you a $6\%$ loan for $60$ months to buy the truck, your trade$-$in allowance is $$10,000.$ What will your monthly payment be if the first payment is due at the end the month?

Sandy just graduated from college. She accumulated $$25,000$ in student loans. She will pay the loans off over $10$ years and the first monthly payment is due in $1$ month $($assume an $5\%$ interest rate$).$ Calculate the amount of her payment.

Sycamore Company is negotiating with a customer for the lease of a large machine manufactured by Sycamore. The machine has a cash price of $$600,000.$ Syamore wants to be reimbursed for financing the machine at a $10\%$ annual return. Calculate the required lease payment if the lease calls for $10$ annual payments with the first payment due today.

On Jan. $1$ Cub Company issued $8\%$ stated rate bonds with a face amount of $$100$ million. The term of the bonds is $25$ years and semiannual interest payments are due on $\frac{6}{30}$ and $\frac{12}{31}.$ The market rate of interest for similar bond issues was $10\%.$ Calculate the issue price for the bonds.

You would like to start saving for retirement. Assuming you are now $20$ years old and want to retire at age $60,$ you have $40$ years for your investment to grow. You decide to invest in the stock market which has earned about $13\%$ per year over the last $80$ years and is expected to continue at that rate. You decide to invest $2,000$ at the end of each year for the next $40$ years. Calculate how much your accumlated investment is expected to be in $40$ years.Using excel formula.