{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Homework 2 solutions (1)

Homework 2 solutions (1) - Homework#2 1 If I invest at an...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
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? $67,910.74 Savings balance 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)? 38.23 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? $30,349.23 Required initial deposit 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? 0.86% Required monthly rate of return
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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? $71,900 Amount financed $938.03 Monthly Payment 6. In 5. above, when will the loan balance be reduced to $18,000 if I increase my payment to $1,400 per month? This is the correct answer 41.5 Months I will owe $18,000 54.5 Months The loan balance reaches $0 67.2 Months I will have overpaid my loan by $18,000
Background image of page 2
7. I purchase a house today for $127,500 with a 5% Down Pmt.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}