Question
Can you assist with this question? I need it urgently please with all working. Ensure it is correct, please. Question 3. (10 marks) (a) A
Can you assist with this question? I need it urgently please with all working. Ensure it is correct, please.
Question 3. (10 marks)
(a) A family member is thinking about a retirement savings account, where she can receive a lump sum at retirement age in 15 years. If she is desirous of receiving $200,000 on retirement, how much would you advise her to deposit in the retirement savings account monthly? Show all working and assume that the annual interest rate is set at 6%.
(b) As a prospective home-owner, you have researched the housing market and you are attracted by two offers. Two $450,000 real estate property with two different Mortgage (amortization) schedules. Schedule A requires a down payment of 10% while Schedule B requires a down payment of 15%. If the mortgage is over a period of 20 years at an annual mortgage rate of 8%, what would be the monthly repayment amount for both schedules?
Assume that the monthly repayment starts 1 month after the mortgage contract is signed and the down payment made.
Show all calculations.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started