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Colleen's parents deposited $75,000 at age 7 into Bank A that pays 5%/year interest compounded semiannually. At age 18, they withdrew the money to use
Colleen's parents deposited $75,000 at age 7 into Bank A that pays 5%/year interest compounded semiannually. At age 18, they withdrew the money to use $100,000 of it for college expenses and deposited the rest into Bank B that pays 6.12%/year interest compounded continuously until she graduates at age 22. She gets hired upon graduation and to get to work she buys a $65,365.19 car by using all the money in Bank B as down payment and making quarterly payments for the loan that charges 8.25%/year interest for 6 years. The moment her car loan is amortized she decides to open an account in Bank C that pays 6.71%/year interest and she deposits $500 every month until age 47 when she buys a $629,418.07 house by using all the money in Bank C as down payment and securing a 30-year mortgage with 6.39 %/year interest compounded monthly. Colleen retires at age 65 and sells her house for $850,906.49. If Colleen adds her equity on top of her retirement account that she wants to withdraw $19,626.57 every month until age 90, then how much she needs to deposit monthly into her retirement account that pays 7.67%/year interest during her employment? AND what was the size of her car payments
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