SHOW YOUR CALCULATIONS FOR #7 20. You have the option of performing calculations manually BUT ARE STRONGLY ENCOURAGED to use a financial calculator or spreadsheet. Either way, you must specify what is being calculated to earn credit: 17. You anticipate being able to put away $1,800 at the end of each year into your 401 (k) for each of the next 25 years (NOT $1,800 once but $1,800 in each year) and anticipate earning 8.5% per year on your investments. Assuming annual compounding and no distributions, how much do you expect to have in your 401 (k) account after 25 years? s. You are borrowing $21,000 with no money down to buy a car. The terms of the loan call for equal monthly payments for 5 years at 4.25% percent interest. What is the amount of each monthly payment? 19. Your company takes out a 10-year term loan to borrow $1,325,000 to finance a building expansion. The annual interest rate on the loan is 4.75% and equal payments are made monthly. How much will the monthly payment be? 20 Referring back to question #19, how much total interest will the company be paying over the life of the term loan