Question
I'm having trouble undressing this chapter and how to input the information in my finance calculator, Please HELP!!! 1.A personal account earmarked as a retirement
I'm having trouble undressing this chapter and how to input the information in my finance calculator, Please HELP!!!
1.A personal account earmarked as a retirement supplement contains$268,000. Suppose$200,000is used to establish an annuity that earns6%, compounded quarterly, and pays$5000at the end of each quarter. How long will it be until the value of the annuity is $0? (Round your answer UP to the nearest quarter.)
________ Quarters
2.Juanita Domingo's parents want to establish a college trust for her. They want to make 16 quarterly withdrawals of$2000, with the first withdrawal 3 months from now. If money is worth7%, compounded quarterly, how much must be deposited now to provide for this trust?
a)Solve the problem. (Round your answer to the nearest cent.)
$________
3.Find the present value of an annuity of$3000per year at the end of each of10years after being deferred for3years, if money is worth7%compounded annually. (Round your answer to the nearest cent.)
$________
4. Aman buys a car for$34,000. If the interest rate on the loan is12%, compounded monthly, and if he wants to make monthly payments of$600for48months, how much must he put down? (Round your answer to the nearest cent.
$_______
5.A couple purchasing a home budget$1700per month for their loan payment. If they have$25,000available for a down payment and are considering a 25-year loan, how much can they spend on the home at each of the following rates? (Round your answers to the nearest cent.)
a) 6.9% compounded monthly
$______
b) 7.1% compounded monthly
$______
6.A couple who borrow$60,000for30years at7.2%, compounded monthly, must make monthly payments of$407.27.
a)Find their unpaid balance after 1 year.
$______
b) During that first year, how much interest do they pay? (Round your answer to the nearest cent.)
$___________
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