Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please (Future value of an annuity) Upon graduating from college 30 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he

please
image text in transcribed
image text in transcribed
(Future value of an annuity) Upon graduating from college 30 years ago, Dr. Nick Riviera was already planning for his retirement. Since then, he has made deposits into a retirement fund on a quarterly basis in the amount of $450 Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 11 percent compounded quarterly. Use five decimal places for the periodic interest rate in your calculations. a. How much has Nick accumulated in his retirement account? b. In addition to this, 10 years ago Nick received an inheritance check for $15,000 from his beloved uncle. He decided to deposit the entire amount into his retirement fund. What is his current balance in the fund? a. The amount Nick has accumulated in his retirement account is $ (Round to the nearest cent) (Annuity number of periods) Alex Karev has taken out a $180,000 loan with an annual rate of 8 percent compounded monthly pay off hospital bills from his wife lzzy's illness. If the most Alex can afford to pay is $2,000 per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $2.500 per month? Use five decimal places for the monthly percentage rate in your calculations. a. If Alex can pay $2,000 per month, the number of years it takes for him to pay off the loan is years. (Round to one decimal place.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding financial statements

Authors: Lyn M. Fraser, Aileen Ormiston

9th Edition

136086241, 978-0136086246

More Books

Students also viewed these Finance questions