Problem 5-25 Present Value (LG5-4)

You are looking to buy a car. You can afford $520 in monthly payments for four years. In addition to the loan, you can make a $1,700 down payment. If interest rates are 8.75 percent APR, what price of car can you afford (loan plus down payment)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Present Value =

Problem 5-51 Investing for Retirement (LG5-4, LG5-9)

Monica has decided that she wants to build enough retirement wealth that, if invested at 10 percent per year, will provide her with $4,300 of monthly income for 25 years. To date, she has saved nothing, but she still has 30 years until she retires.

How much money does she need to contribute per month to reach her goal? First compute how much money she will need at retirement, then compute the monthly contribution to reach that goal. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Contribution per month =