Course Hero Logo

CC4 - Wake Up and Smell the Coffee.pptx - CLASS CASE NO. 4:...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 5 out of 14 pages.

WAKE UP ANDSMELL THECOFFEECLASS CASE NO. 4:LOBATON | LUCOT
1. Based on the information provided in table 1, if thehall’s continue making minimum payments on theiroutstanding debts, how much money will they haveleft over for all other expenses?Car Payment:5000 *0.0599 / 121 - (1 + (0.0599/12)) ^-245000 *0.004991 - (1 + 0.00499) ^-245000 *0.00499 / 0.112605000 *0.04431221.55College Loan Payment:12000 *0.0525 / 121 - (1 + (0.0525/12)) ^-2412000 *0.004381 - (1 + 0.00438) ^-2412000 *0.00438 / 0.0995812000 *0.04398527.82Credit CardPayment:10,000* 0.03300
1. Based on the information provided in table 1, if thehall’s continue making minimum payments on theiroutstanding debts, how much money will they haveleft over for all other expenses?
2. How much money will Laura and Marty have to deposit eachmonth (beginning one month after she is born and ending whenshe turns 18) in order to have enough saved up for their child’seducation.Assume that the yield on investments is 8% per year,college expenses increase at the rate of 4% per year, and thattheir child will enter college when he or she turns 18 and willcomplete the degree in 4 years.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 14 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
N/A
Tags

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture