MATH 154 Tidewater Community College Interest Annuity & Mortgages Problems
I’m working on a mathematics multi-part question and need an explanation and answer to help me learn.
1. Jim deposits $3000 in an account with an APR of 2.72% interest compounded daily and wants to know what the balance will be in 10 years. Use Excel to determine how much will Jim have in the account in 10 years? (Use 365 days in 1 year.)
1a)*Include your completed Excel File for the previous problem so that I can see that you know where to put each number in the spreadsheet.
2. Suppose you want to have $500,000 for retirement in 35 years. Your account earns 10% interest compounded monthly. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $
2a) *Include your completed Excel File for the previous problem so that I can see that you know where to put each number in the spreadsheet.
3. You want to be able to withdraw $45,000 each year for 25 years. Your account earns 8% interest.
a) How much do you need in your account at the beginning?
$
b) How much total money will you pull out of the account?
$
c) How much of that money is interest?
$
3a) Include your completed Excel File for the previous problem so that I can see that you know where to put each number in the spreadsheet.
4. You want to buy a $258,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest.
a) How much is the loan amount going to be?
$
b) What will your monthly payments be if the interest rate is 6%?
$
c) What will your monthly payments be if the interest rate is 7%?
$
*Include your completed Excel File for the previous problem so that I can see that you know where to put each number in the spreadsheet.
