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

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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 %
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