Question 1

Jack is working as a Chief Accounting Officer (CAO) at KPMG inNew York; his annual salary is $ 42,000. He is planning to deposit 10% of his salary at Castco Bank with an annual interest of 10% during the first 5 years. Then he will withdraw 50% of the interest that he earned. From year 6 to year 11, he will continue to deposit, however, the percentage will be 15% of his annual salary with the same interest rate (10%). At the end of year 11, Jack will withdraw 30% from the total amount in his Castco Bank account, and in addition to the remaining balance, he will continue to add $ 5,000 yearly for 4 years (Years 12-15) with the same interest rate (10%). After year 15, Jack is going to apply for 10-year loan from Housing Bank to buy a new house with an annual interest of 12%, where 60% will be required as a down payment, which equals to the total amount that he has at the end of year 15.

Determine: a. The price of the house (in dollars) b. The annual loan payment (in dollars)

Please write correct and clear final answers as well.