Question
Solve Each Mathematically (Without Financial Calculator), Note answers are doing, showing work is required. 1) Your investment goal is to have $3,000,000 in 40 years
Solve Each Mathematically (Without Financial Calculator), Note answers are doing, showing work is required.
1) Your investment goal is to have $3,000,000 in 40 years for retirement. You decide to invest in a mutual fund today that pays 12% per year compounded monthly. How much must you invest at the end of each month to meet your investment goal? Round to the nearest $1.
A) $245
B) $255
C) $285
D) $305
E) $315
Answer: B
41) You have borrowed $70,000 to buy a sports car. You plan to make monthly payments over a 15-year period. The bank has offered you a 9% interest rate compounded monthly. Calculate the total amount of interest dollars you will pay the bank over the life of the loan. Round to the nearest dollar and assume end-of-month payments.
A) $47,451
B) $51,644
C) $54,776
D) $57,798
Answer: D
2) You have borrowed $70,000 to buy rental property. You plan to make monthly payments over a 15-year period. The bank has offered you a 9% interest rate compounded monthly. Calculate the principal paid to the bank in month two of the loan. Assume end-of-period payments.
A) $184.01
B) $186.38
C) $188.46
D) $190.64
E) $192.73
Answer: B
3 A friend of yours plans to begin saving for retirement by depositing $2,000 at the end of each year for the next 25 years. If she can earn 10% annually on her investment, how much will she have accumulated at the end of 25 years?
A) $50,000
B) $196,692
C) $100,000
D) $216,361
Answer: B
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