COMM5005 Week 5 Tuts210

COMM5005 Week 5 Tuts210 - compounded monthly and payments...

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COMM5005 Week 5 Tutorial Questions Questions 1-2 and 4-11 below come from the Haeussler Paul and Wood textbook. Question HPW Page Section Problem 1 217 5.4 30 2 217 5.4 41 3 A couple have a savings plan to pay for their twin children’s education once they reach university 9 years from now. They deposit $225 at the end of each month into an account which earns 5.6%p.a. compounded monthly. (a) How much will be in the account at the end of 9 years? (b) Now assume that after 4 years the interest rate changes to 6.6% p.a.
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Unformatted text preview: compounded monthly and payments continue to be made at the end of each month . How much is in the account after 9 years? 4 217 5.4 43 5 221 5.5 12 6 221 5.5 15 7 221 5.5 17 8 221 5.5 21 9 221 5.5 22 10 223 5.6 11 11 223 5.6 14 12 Robert and Bella have a housing loan of $375,000 repayable with end of month payments over 25 years. The interest rate is 8.8% per annum compounded monthly. After sixteen years and two months the house is destroyed by a cyclone. How much do they still owe on the loan at this time?...
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