Please solve Q 1b with formulas and explanations. Also answer the question.

I also attached how i calculated Q 1 and the professor said the PV was correct. The 7.2% she said is a monthly rate. I also attached her feedback for this question. please help.

is it clear now?

this is what the professor said after i submitted my calculations. She said Q 1b is not correct

X Cut Calibri (Body 11 - A A Wrap Text General Copy Paste B 1 U- A. A F Merge & Cemer $ . % ) Insert Format DE Conditional Format Cell Formatting as Table Styles 133 . V fox B D E G 1 L Questions 2 3 4 5 6 7 8 1. Marie, an employee at McCormick, has determined that she will need $5000 per month in retirement over a 30-year period. She has forecasted that her money will earn 7.2% compounded monthly. Marie will spend 25-years working toward this goal investing monthly at an annual rate of 7.2%. How much should Marie's monthly payments be during her working years in order to satisfy her retirement needs? Hint: Find how much Marie must have at retirement, then find the monthly payments to reach that goal. What maximum amount could Marie withdraw each month so that her balance never decreases (nearest dollar)? 2. Kathy plans to move to Maryland and take a job at McCormick as the Assistant Director of HR. She and her husband Stan plan to buy a house in Garrison, MD and their budget is $500,000. They have $100,000 for the down payment and McCormick will pay for closing costs. They are considering either a 30 year mortgage at 4.5% annual rate or a 15 year mortgage at 4%. Calculate the monthly payment for each. Property taxes and insurance will add $1,000 per month to whichever mortgage they choose. What should Kathy and Stando? 9 10 1 2 3 4 5 6 7 8 Answer Questions 1 and 2 here. Show your calculations, 9 1 PV PMT 1 2 1b PMT Hint: Consider the payment as perpetuity, 11 000 x Condor Fora Cat Formatting as Tobie Styles Format Sort & Filter fx -736606.78*(7.28/12) B D F G H K L Questions 1. Marie, an employee at McCormick, has determined that she will need $5000 per month in retirement over a 30-year period. She has forecasted that her money will earn 7.2% compounded monthly Marie will spend 25 years working toward this goal investing monthly at an annual rate of 2.2%. How much should Marle's monthly payments be during her working years in order to satisfy her retirement needs? Hint: Find how much Marie must have at retirement, then find the monthly payments to reach that goal. What maximum amount could Marle withdraw each month so that her balance never decreases (nearest dollar)? 2. Kathy plans to move to Maryland and take a job at McCormick as the Assistant Director of HR. She and her husband Stan plan to buy a house in Garrison, MD and their budget is $500,000. They have $100,000 for the down payment and McCormick will pay for closing costs. They are considering either a 30 year mortgage at 4.5% annual rate or a 15 year mortgage at 4%. Calculate the monthly payment for each. Property taxes and insurance will add $1,000 per month to whichever mortgage they choose. What should Kathy and Stando? Answer Questions and 2 here. Show your calculations, N WYR PMT IFV PV PV PMT 360 0.60% -5000 0 $736,606.78 1 $736,606.78 $880.90 PV N VYR FV PMT 300 0.60% -736.606.78 $880.90 16 PMT $4,420 Hint: Consider the payment as perpetuity If she withdraws $4419.64 each month, the balance remains the same PMT- PV'/VA moths on both interest rate and period. For q 1b Use the figure you correctly determined in Q 1 as your PV and multiply by the monthly interest rate. In question 2 your PMT figures are wrong. You have again ignored the implication of 12 moths on both the rate and the periods. You are also not financing the full $500 000. Please fix. Calibri (Body) 11 - AA- Wrap Text X Cut Copy Format . General B 1 U BA Merge & Center $. % 3 fx Conditional Format Formatting a Table Cell Styles B D G H 1 K Questions 1. Marie, an employee at McCormick, has determined that she will need $5000 per month in retirement over a 30-year period. She has forecasted that her money will earn 7.2% compounded monthly Marie will spend 25 years working toward this goal investing monthly at an annual rate of 7.2%. How much should Marie's monthly payments be during her working years in order to satisfy her retirement needs? Hint: Find how much Marie must have at retirement, then find the monthly payments to reach that goal. What maximum amount could Marie withdraw each month so that her balance never decreases (nearest dollar)? 2. Kathy plans to move to Maryland and take a job at McCormick as the Assistant Director of HR. She and her husband Stan plan to buy a house in Garrison, MD and their budget is $500,000. They have $100,000 for the down payment and McCormick will pay for closing costs. They are considering either a 30 year mortgage at 4.5% annual rate or a 15 year mortgage at 4%. Calculate the monthly payment for each. Property taxes and insurance will add $1,000 per month to whichever mortgage they choose. What should Kathy and Stando? Answer Questions 1 and 2 here. Show your calculations, 1 PV PMT 1b PMT Hint: Consider the payment as perpetuity. N PMT Monthly Open-ended discussion. Instructions Financing and Investing Corporate Valuation Annuities + Tue 50 Uncu Daniela Project 4 Workbook Insert Q- Search Sheet Page Layout Formulas Data Review View 8+ Share Calibri (Body) 11 A A Wrap Text Currency Insert - B I A. Merge & Center Delete $ . % ) Conditional Format Cell Formatting Table Styles Format Sort & Fiber XfxPV[118,117,119,120,0) B D E G 1 Questions 1. Marie, an employee at McCormick, has determined that she will need $5000 per month in retirement over a 10-year period. She has forecasted that her money will earn 7.2% compounded monthly. Marie will spend 25 years working toward this goal investing monthly at an annual rate of 7.2%. How much should Marie's monthly payments be during her working years in order to satisfy her retirement needs? Hint: Find how much Marie must have at retirement, then find the monthly payments to reach that goal. What maximum amount could Marie withdraw each month so that her balance never decreases (nearest dollar)? 2. Kathy plans to move to Maryland and take a job at McCormick as the Assistant Director of HR. She and her husband Stan plan to buy a house in Garrison, MD and their budget is $500,000. They have $100,000 for the down payment and McCormick will pay for closing costs. They are considering either a 30 year mortgage at 45% annual rate or a 15 year mortgage at 4%. Calculate the monthly payment for each. Property taxes and insurance will add $1,000 per month to whichever mortgage they choose. What should Kathy and Stando? Answer Questions 1 and 2 here. Show your calculations N VYR PMT FV PV 350 0.60% -5000 0 $736,606.78 PV N VYR FV PMT 300 0.60N -736,606.78 $880.90 1 PV PMT $736.606.78 $880.90 1b PMT- PV*I/YR PMT $4,420 Hint: Consider the payment as perpetuity If she withdraws $4419.64 each month, the balance remains the same. PMT Open-ended discussion Monthly 2 structions Financing and Investing Corporate Valuation Annuities + 130% This will also affect your answer to Question 2. Please fix and resubmit. 5/21 Your answers supplied to Corporate valuation are all correct Daniella - good effort! 5/21 Daniella your answer to the PV of question 1 is correct but not the answer to the PMT. You have hard coded the number in so it is not showing how you got to your formula for PMT. Please remember to take into account the effect of moths on both interest rate and period. For q 1b Use the figure you correctly determined in Q 1 as your PV and multiply by the monthly interest rate. In question 2 your PMT figures are wrong. You have again ignored the implication of 12 moths on both the rate and the periods. You are also not financing the full $500 000. Please fix