Question
E. Your investment account is expected to earn a 5% return for next two years and then 8% return for next four years after that.
E. Your investment account is expected to earn a 5% return for next two years and then 8% return for next four years after that. You need to withdraw $750 from this account at the end of each month for next six years. After last withdrawal at end of six years, nothing remains in your account. how much is the deposited in this account today? (Assume monthly compounding)
F. You just bought a condo for $250,000 and paid $50,000 as down payment. The remaining amount is financed through a loan of 4.5% compounded monthly. The loan is for 15 years. You have to make monthly payments at the end of each month. What is your monthly payment? What is the balance of this loan after ten tears? What is the total interest paid on this loan for 15 years?
SHOW WORK/ CALCULATOR KEYS
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