{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

review1

# review1 - A3 Savings Account PV Problem Question Your...

This preview shows pages 1–2. Sign up to view the full content.

A3 Savings Account PV Problem Question: Your parents put \$50 at the end of each month in an account named for you, which they opened Sept 1, 1991. The annual interest rate on the account was 3.6% over the life of the account. (use end mode) A) What is the value of the account Sept 1, 2011? N=240, I%=.3, PMT=50 FV=\$17,537 ? B) What "lump-sum" would they have had to deposit when they opened the account for it to have the same 5at the end? N=240, I=.3, FV=17,537, PV=\$8,545.38 ? C) If they would have invested the amount found in part B in Google, which has grown at 18% per year, what would your wealth be at the end? (On this part set p/y to 1 to get a more accurate estimate of how the stock market value increases on an annual basis.) N=20, I=18, PV=8,545.38, FV=\$234,083.89 ? A4 Basic Mortgage Problem Provident Funding Mortgage Rate Quotes as of 6/30/2011. [Note: pts/credit indicates the % of the principle borrowed as a fee that must be paid to borrow at the designated rate. 1 point = 1% of the amount borrowed. Negative points are payments made to the borrower at that rate.] Rate Pts/Credit %

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}