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Unformatted text preview: _______________
P/Y = _______________
C/Y = _______________ 1 5) A family has a $100,000, 30 year mortgage at 9.66% compounded monthly.
What is the unpaid balance after
a) 5 years? _____________________________
b) 30 years? ____________________________
c) How much interest will they pay in 30 years? _______________________ N = _______________ a) b) c) I% = _______________ PV = _______________
PMT = _______________
FV = _______________
P/Y = _______________
C/Y = _______________ 6) A company establishes a s sinking fund to upgrade a plant in 15 years at an estimated cost of $2,500,000.
a) How much should be invested each month into an account paying 8.25% compounded monthly? _____________________________________________
b) How much interest will the account earn in the 15 years? __________________ N = _______________ I% = _______________ b) PV = _______________
PMT = _______________
FV = _______________
P/Y = _______________
C/Y = _______________
7) An individual deposits $2,000 each year for 25 years into an IRA. When she retires immediately after the 25th
deposit, the IRA is worth $220,000.
a) Find the interest rate earned by the IRA over the 25 year period leading up to retirement. ________________________________
b) Assume that the IRA continues to earn the interest rate found in part (a) . How long can the retiree withdraw $30,000 per year? _____________________...
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 Fall '
 Bonacci
 Math

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