Twelve years ago, Pat and Mike took out a $115,000 loan for 30 years at 9.3% interest. Their monthly payments are $950.25. Mike just received an inheritance and they want to pay off the loan. How much do they still owe?

Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000 from her grandmother’s estate. She plans to use the money for the down payment on a home in ten years when she finishes her education. Right now the funds are in a savings account paying 1.0 percent APY. How much would Isabel have in ten years if instead she purchased a ten-year CD paying 3.0 percent?

1 Ann and Sue sell their recreation property. They make $245,000 on the sale and deposit it immediately into a retirement fund. The fund earns 2.45%, compounded monthly, for the entire time. Exactly ten years after the sale, Ann retires. They now want to start supplementing their income with payments from the retirement fund. They want the payments to start one month after Ann retires. They want these payments to last for 5 years. How much can they withdraw per month from the retirement fund? (ANNUITY)

A mother earned $18750.00 from royalties on her cookbook. She set aside 20% of this for a down payment on a new home. The balance will be used for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) that earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $900.00, how much money was invested at each rate? How much money was invested in the CD account? (Round to the nearest cent.) GILB

Your grandmother bought an annuity from Great-West Life Insurance Company for $361,220 when she retired. In exchange for the $361,220, Great-West will pay her $30,000 per year until she dies The interest rate is 6%. How long must she live after the day she retired to come out ahead (that is, to get more in value than what she paid in? -CHED She must live at least years. (Round up to the nearest whole year.)

Leon and Heidi decided to invest $2,750 annually for only the first Nine years of their marriage. The first payment was made at age 25. If the annual interest rate is 9%, how much accumulated interest and principal will they have at age 70?

Ben invested $7,500 twenty years ago with an insurance company that has paid him 6 percent simple interest on his funds. Charles invested $7,500 twenty years ago in a fund that has paid him 6 percent interest, compounded annually. How much more interest has Charles earned than Ben over the past 20 years?

Jim and Jane just married and want to purchase a house. They have $80,000 for a down payment and want to purchase a $380,000 house. If they borrow the balance for 15 years at 5.5%, how much are their monthly payments?

4. Cecilia Thomas is 25 years old and is planning to invest $ 3,000 annually in an IRA that pays 9.75% compounded annual interest, until she retires at 65 years of age. How much money will Cecilia have for her retirement?

Larry purchased an annuity from N insurance company that promises to pay him $2,000 per month for the rest of his life. Larry paid $210,240 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $2,000 this month. If Larry lives more than 15 years after starting the annuity, how much of each additional payment should be included in gross income?