Problem 2 Suppose you purchased a house and took a 30 -year mortgage. The mortgage is unusual: you pay yearly, not monthly. The yearly payment is $17,000 and the interest rate is 4.2% . What is the amount of mortgage you took? (Round to two decimals.) Hint: find the PV of all the payments.
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Problem 2 Suppose you purchased a house and took a 30 -year mortgage. The mortgage is unusual: you pay yearly, not monthly. The yearly payment is
$17,000
and the interest rate is
4.2%
. What is the amount of mortgage you took? (Round to two decimals.) Hint: find the PV of all the payments.
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- QUESTION 1 A student has inherited $5,000. If it is placed in a savings account that earns 4% interest, how much is in the account in 30 years? Assume that the unit for your answer is in $. Only state the numeric value of your calculation.udiasirois1122/Xv7zYW5RnILBBINV2A9egx/unit-4-project-tvm-calculator-pdf?pg=7 -Sign- At will focus on these types of savings plans in this portion of the project. The Savings Plan formula is below: Y =_ APR= A = PMT- n = A = Note: This formula assumes that the payment period and compounding period are the same. For example, monthly payments would indicate monthly compounding. Let's work an example with the savings plan formula and the TVM calculator. Example 3 Suppose that Ruby's employer offers a retirement plan. Ruby decides to invest $350 per month into the account. The interest is compounded monthly. Historically, the account has earned 7% APR. How much will be in his account if she retires in 25 years? Fill out the value for each variable, and put a question mark for the value we need to solve for. PMT= $350 25 0.07 12 $283,525.09 ((1+ APR-1) (APR) PMT= regular payment amount (deposit) Y = number of years APR = annual percentage rate (written as a decimal) n = number of times the…It is likely that airplane tickets will increase 8% in each of the next 5 years. The cost of a plane ticket at the end of the first year will be 10622. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each year for the next 5 years? Assume the savings account pays 2% annual interest. Round your answer to 2 decimal places.
- 1. You borrow $20,000 from a family member and agree to pay it back in 6 months. Because you are part of the family, you are only being charged simple interest at the rate of 0.5% per month. How much will you owe after 6 months? How much is the interest?Find savings If :- APS = 0.21 Income = $2200It is likely that airplane tickets will increase 5% in each of the next 4 years. The cost of a plane ticket at the end of the first year will be $10571. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each year for the next 4 years? Assume the savings account pays 2% annual interest. Round your answer to 2 decimal places. Add your answer
- You want to buy an apartment at the price of 4 million Hong Kong dollars. You will do this with a mortgage from a bank at the annual interest rate 8% for 30 years. What is your annual payment? Draw a cash flow diagram.If the interest rate is 7.0%, what is the present value of a perpetuity paying $210 per year? (A perpetuity is a bond that makes payments forever.) Round to the nearest dollar. Do not use dollar signs or commas in your answer. Example: if the answer is $1,234.56, then write "1235"You deposit $ 9,030 in an account that pays 3 % simple interest. How much do you have after 4 years? If needed, round your answer to zero decimal places.
- Mr. Ali is a self-employed individual is opening a retirement account at a bank. His goal is to accumulate $1,000,000 in the account after 20 years. A local bank is willing to open a retirement account that pays 8% interest. Mr. Ali expects that his income will increase 6% yearly during his work. What should be size of his first deposit?14. When you complete your MBA, you will treat yourself to a new car. The car you want to buy costs $25,000 and you have enough to put 20% down in cash. You can take out a loan for the rest of the cost of the car. Calculate your monthly car payments assuming the auto finance department states that the annual interest rate on the car loan is 8% and you pay the loan over a 3-year period.You opened a savings yesterday by depositing $10,000. You would like to be able to withdraw $2,000 per year for each of the next 4 years of college and still have $3,000 left in the account when you graduate. What interest rate does this account need to earn? (HARD)