« previous next »

Author Question: You currently have 48,000 in your bank account, which pays annual interest of 5, and you are saving ... (Read 91 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?

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

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Per capita annual alcohol consumption (2005) Per capita annual alcohol consumption (2005)
Wind, solar, biomass, and geothermal power account for less than 1% of global power generation Wind, solar, biomass, and geothermal power account for less than 1% of global power generation
After 159 days,she paid a maturity value of $11,626, which included interest of $814. After 159 days,she paid a maturity value of $11,626, which included interest of $814.
The chromosome locations for BRCA1 and BRCA2. Together, these genes account for the majority of case The chromosome locations for BRCA1 and BRCA2. Together, these genes account for the majority of case
Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ... Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ...
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Antidiuretic hormone (vasoconstriction, water reabsorption & sweat inhibition)

For a complete list of videos, visit our video library