4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the purchase price as a down payment. Your annual salary is $44,000 and you can save 18% of this salary every year. How long will it take for you to save for the required down payment? about _____ years?

C. ich total money will you pull out of the account? account at the beginning How much of that money is interest? 19. You can afford a $700 per month mortgage payment. You've found a 30 year loan at 5% interest. a. How big of a loan can you afford? b. How much total money will you pay the loan company? How much of that money is interest? C. down payn

You decide to purchase your own property. The estimated purchase price is $1,600,000. You obtain 90% financing from the bank, 7% fixed rate for 25 years. How much do they have to pay the bank every year? How much do you still owe the bank in 14 years?

You want to buy a new house.  You can afford to pay $15,000 per year for 30 years with the first payment being due one year from today.  If the interest rate on your loan is 3%, what price of home can you buy today? Enter your answer as a number rounded to 2 decimal places.

2. (From section 6.2) You want to be able to withdraw $50,100 from your account each year for 20 years after you retire. You expect to retire in 35 years. If your investment account earns 5.5% interest, how much will you need to deposit into the account at the end of each year until you reach retirement to achieve your retirement goals? (a) The first part is finding how much we need to have in the account by the time we retire. Which formula will you use first? Circle one. Annuity Payout-Annuity (b) What are the following variables that we will need for the formula? PMT = n = t = r = A or Po = (c) Write the formula you will use with the numbers plugged in below. (d) Solve using your calculator or technology and round to two decimal places. Work is not required here. Write the answer here and state which variable you solved for. (e) Using your own words, describe what you found by solving the equation in terms of the word problem given.

5) You need $10,000 annually for 4 years to complete your education, starting next year. (One year (1 from today you would withdraw the first $10,000.) Your uncle will deposit an amount today in a bank paying 5 percent annual interest, which would provide the needed $10,000 payments. How large must the deposit be? Answer must be rounded at 2 decimals 6) An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8 (10 percent annually, al risk earn 8 a. What is its present value? b. Its future value? Answer must be rounded at 2 decimals a. b.

Suppose your parents have just retired and have $1 million in a retirement account. For how many years can they withdraw $5,000 at the beginning of each month for expenses, assuming that the account will continue to earn a 5 percent annual return until it is exhausted?

The following facts apply to the pension plan of Splish Inc. for the year 2020. Plan assets, January 1, 2020   $525,500   Projected benefit obligation, January 1, 2020   525,500   Settlement rate   8%   Service cost   36,800   Contributions (funding)   23,800   Actual and expected return on plan assets   49,800   Benefits paid to retirees   30,300   Using the preceding data, compute pension expense for the year 2020. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense for 2020 and the year-end balances in the related pension accounts.

10) The Jacobs family is planning to buy a home. They have some money 10 for a down payment already. They see a home they like and compute that they would need to borrow $213,000 from a bank over a 30-year period. The APR is 6.75%. (a) What is the monthly payment, to the nearest cent? (b) What is the total of all of the monthly payments over the 30 years? (c) What is the total interest for the 30 years? (Section 8-3) *

You are preparing for your retirement and have decided to begin saving early. Based on your research, you've determined that you will require $3,000 per month to cover your living expenses during retirement. a. How much money do you need when you retire if you place all of it in a compound interest account that earns 7% compounded monthly, and is living off the interest only? (What is the required retirement savings amount that can generate your monthly living expenses as interest income?)