Homework 2 (1)

# Homework 2 (1) - The balance is financed over 30 years at...

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Homework #2 1. If I invest \$3,750 today at an interest rate of 7.32% per year How much will I have in 41 years? 2. I want to accumulate \$150,000 . If I invest \$2,600 today and the return is 11.19% per year when will I reach my goal (years)? 3 How much do I have to deposit today if I want to retire with \$2,000,000 47 years from today and I can earn a return of 9.32% per year? 4. I plan to invest \$2,200 now with the hope of withdrawing \$4,500 in 84 months. What monthly rate of return is required? 5. I purchase a BMW M3 for \$83,400 . If I receive a trade in allowance of \$11,500 for my old car, what will my payments be if my loan interest rate is 0.219% per month and loan term is 84 months? 6. In 5. above, when will the loan balance be reduced to \$18,000 if I increase my payment to \$1,400 per month?

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7. I purchase a house today for \$127,500 with a 5% Down Pmt. A fee of 1.75% of the loan amount is added to the loan balance.
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Unformatted text preview: The balance is financed over 30 years at an interest rate of 0.316% per month. What is my monthly payment? 8. In 7. above, I make an extra payment of \$20,000 at the end of year 2 If I continue to make the regular monthly payments, How many years of payments from the original loan will I save? 9. I'm starting a retirement savings program and expect to need \$2,900,000 in 39 years. I begin with a deposit of \$1,500 and then deposit \$600 per month at an interest rate of 0.734% per month I also have a trust fund that will add \$100,000 at the end of the 6 th year What will my monthly deposit need to be, beginning in year 7 , if my return increases to 0.785% per month? 10. In 9. above, what return is required (% / month) beginning in year 7 if my monthly deposit remains at \$600 ?...
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Homework 2 (1) - The balance is financed over 30 years at...

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