4. I just began working and was advised by an insurance agent to invest for retirement. An ordinary annuity pays 8.4% compounded monthly. I plan to work for 25 years and want to have enough at retirement to receive monthly payments of $8,000 for 20 years. How much should I deposit monthly whilst I work? 5. A couple purchased a home 20 years ago for $200,000. The home was financed by paying 10% down and signing a 30-year mortgage at 12% compounded monthly on the unpaid balance. The net market value of the home is now $2,500,000, and the couple wishes to sell the house. (a) How much was the monthly loan payment? (b) Construct an amortization schedule for the first two payments (c) How much equity does the couple have in the house after making 24 years of payments?

4. I just began working and was advised by an insurance agent to invest for retirement. An ordinary annuity pays 8.4% compounded monthly. I plan to work for 25 years and want to have enough at retirement to receive monthly payments of $8,000 for 20 years. How much should I deposit monthly whilst I work? 5. A couple purchased a home 20 years ago for $200,000. The home was financed by paying 10% down and signing a 30-year mortgage at 12% compounded monthly on the unpaid balance. The net market value of the home is now $2,500,000, and the couple wishes to sell the house. (a) How much was the monthly loan payment? (b) Construct an amortization schedule for the first two payments (c) How much equity does the couple have in the house after making 24 years of payments?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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