« previous next »

Author Question: You currently have 48,000 in your bank account, which pays annual interest of 5, and you are saving ... (Read 42 times)

sheilaspns

  • Hero Member
  • *****
  • Posts: 567
on: Jul 10, 2018
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

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 10, 2018
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Annual Water Use in the United States Annual Water Use in the United States
Bank teller assisting with customer service. Bank teller assisting with customer service.
How to calculate simple interest (Part 5; r = I/Pt) How to calculate simple interest (Part 5; r = I/Pt)
A Radio Telescope in Green Bank, West Virginia A Radio Telescope in Green Bank, West Virginia
A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ... A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ...
A bank statement shows a balance of $2,970.31 The check register of the account owner shows an ... A bank statement shows a balance of $2,970.31 The check register of the account owner shows an ...
Video: Hormonal feedback loop components

For a complete list of videos, visit our video library