Question
Hi! Please answer all questions and I will give a good like! I will only give like if you answer all. Thank you. Question 10
Hi! Please answer all questions and I will give a good like! I will only give like if you answer all. Thank you.
Question 10 Your parents will retire in 21 years. They currently have $220,000, and they think they will need $1,400,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
_____________%
Question 11
a)Loan amortization and EAR You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 9% with interest paid monthly. What will be the monthly loan payment? Round your answer to the nearest cent.
$_____________
b) What will be the loan's EAR? Round your answer to two decimal places.
_______________%
Question 12 Future value If you deposit $6,000 in a bank account that pays 10% interest annually, how much would be in your account after 5 years? Round your answer to the nearest cent. $___________
Question 13 Future value: annuity versus annuity due a) What's the future value of a 6%, 5-year ordinary annuity that pays $800 each year? Round your answer to the nearest cent. $_________
b) If this was an annuity due, what would its future value be? Round your answer to the nearest cent. $ _________ |
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