You plan to buy an apartment for $300,000, but you have only $8,000 in cash. The bank will loan you the rest at the annual interest rate of 12%, with the payments spread over 30 years. Find your yearly payments.
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You plan to buy an apartment for $300,000, but you have only $8,000 in cash. The bank will
loan you the rest at the annual interest rate of 12%, with the payments spread over 30 years.
Find your yearly payments.
Step by step
Solved in 2 steps with 2 images
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityUse the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
- Your insurance agent is trying to sell you an annuity that costs $40,000 today. By buying this annuity, your agent promises that you will receive payments of $220 a month for the next 21 years. What is the rate of return on this investment?you need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer.You want to buy a car, and a local bank will lend you$40,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 8% with interest paid monthly. What will be the monthly loan payment? What will be the loan’s EAR?
- you want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over 5 years(60 months), and the nominal interest rate will be 11% with interest paid monthly. What will be the monthly loan payment? What will be the loans EAR?You want to buy a house. The loan amount will be $285,000.00. A bank is offering a 5% interest rate for 240 months (20 years). What will your monthly payments be? My monthly payment will be $_________ .You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $30,800 at the end of each year for the next 10 years. You expect to earn 7 percent each year. Required: 1. Determine how much you will have saved after 10 years. 2. Determine the amount saved if you were able to deposit $33,300 each year. 3. Determine the amount saved if you deposit $30,800 each year, but with 11 percent interest.
- You bought a house for $175,000. The bank requires a 25% down payment; it will provide a 30 year mortgage loan to you for the remainder. Assume an annual interest rate of 5% and monthly payments. What is your monthly payment? Use the $ sign and round to the nearest dollar.You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the interest rate is 7.50%, what is the most you can borrow?You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $30,700 at the end of each year for the next 10 years. You expect to earn 10 percent each year. Required: 1. Determine how much you will have saved after 10 years. 2. Determine the amount saved if you were able to deposit $33,200 each year. 3. Determine the amount saved if you deposit $30,700 each year, but with 12 percent interest. (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine how much you will have saved after 10 years. Note: Round your final answer to the nearest whole dollar. Balance in the Savings Account $ 490,483