Q5. rate compounued monthly for their new-born daughter Henrietta. Mr. and Mrs Lacks transfer 7% and 5% of their salaries, respectively, to the savings account every month. Henrietta will go to college at her 18. Each year expense for the college is $40 000 for 5 years and the minimum accepted rate of return is 3%. Mr. Lacks expects to get raise once in every 2 years at about 8% of his salary. If monthly salary of Mrs. Lacks is $ 1500, how much money Mr. Lacks should make during the first 2 years to cover the 5-year college expenses? Mr. and Mrs. Lacks want to collect money for college expenses in a bank at 9% interest Ps. Raise will be applied in the first month at every second year. Yearly college expenses will be paid at the end of the year.)

Rich wants to have $25 000 in 5 years for a down payment on a house. How much should he invest today at 6.25% per annum, compounded quarterly? i = n = A = P = ? Present Value, P = A(1 + i)^ Notice the negative exponent Therefore, he should invest $ ..today.

Question 10 please

Suppose you need to borrow $15000 to finance a purchase of a new car for a period of 4 years. You bank offers you a loan with 5% annual interest rate and a fixed monthly payment of $345. What is the interest owed, principal paid and the principal outstanding after the first 2 monthly pay- ments? Hint: do not forget to convert the term of the loan and the interest rate to monthly frequency

i will 10 upvotes urgent A borrower bought a house for$300,000; he can obtain an80%loan with a 20 -year fully amortizing.7%interest rate and monthly payment. Alternatively. he could get a 30 -year fully amortizing 90%loan at 9%. What is the incremental cost of borrowing the additional fund?

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Question 1 Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self- managed retirement fund. He thinks he will need S40,000 per year during retirement. He intends to invest his retirement in a low-risk mutual fund which return 1.5% per year. How many years can he live off this retirement fund without the need to look for a job?