You currently have 48,000 in your bank account, which pays annual ...

[sheilaspns]

You currently have 48,000 in your bank account, which pays annual interest of 5, and you are saving up to buy a brand new 150,000 Jaguar convertible. In how many years will you have enough money to buy the car?
 
  A) 26.0 years
  B) 25.0 years
  C) 18.0 years
  D) 20.0 years
  E) 24.0 years

Question 2

You pay 20 down on a home with a purchase price of 300,000. Your bank will loan the remaining balance of 240,000 at 8 APR with a 30-year maturity. You will make monthly payments on the loan. What is the monthly annuity payment?
 
  What will be an ideal response?

[Pswine]

Answer to Question 1

E

Answer to Question 2

Answer: The bank will loan (1 - 0.2)  300,000 = 240,000, and this is the PV.
The PVIFA using r = = 0.66667, and n = 30  12 = 360 is: PVIFA = 136.28349.
The monthly annuity payment is: PMT = = = 1,761.03.