Question
Please donot attempt if u can't answer all parts.. a) What would your house payment be if you purchased a $220,000 house, put 20% down
Please donot attempt if u can't answer all parts.. a) What would your house payment be if you purchased a $220,000 house, put 20% down and financed the balance at 3.85% for 30 years?
b) How much can the Arts Council spend each year forever if you give them an endowment of $40,000? They can get an average return of 5.5% on their invested money.
c) What is the effective annual interest rate of 6.25% compounded monthly?
d) How much will you have when you retire if you invest $12,000 each year for the next 40 years? You expect to get an average return of 8% on your investments.
e) If you want to withdraw $250,000 each year during retirement (you plan to be retired for 25 years), how much do you need in the bank on the day you retire? You can get a return of approximately 7%.
f) Would you rather get $3,000 today or $500 at the end of each year for 10 years? Your opportunity cost of capital is 10%.
g) If you invest your money would you rather get 5% compounded semiannually or 5.08% compounded annually?
h) What would your car payment be if you purchased a $20,000 car, put 10% down and financed the balance at 5.5% for three years?
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