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1. You are thinking about buying the Ben Paradigm for $4.95 million. The owner needs to...

1. You are thinking about buying the Ben Paradigm for $4.95 million. The owner needs to sell soon so he says he’ll sell it to you for $4 million if you pay him $6 million in five years. What is the interest rate on this loan?

2. You are just starting graduate school part-time, and you’ve decided you want to buy a used Pete's watch when you graduate in four years. The watch will cost $34,995. You think you can save $600 a month during your four years of college. If interest rates are about 4%, will you be able to buy the watch when you graduate?

3. You are thinking about buying Siesta Key off the coast of Florida for $15.8 million. The owner says that if you give him a $2 million down payment, he will give you a 30-year, 5% loan. If you buy it, what will your monthly payment be?

4.  If you deposit $1,000 into an account that pays 3% interest, how much will you have in twenty years?

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS NOTHING WAS MENTIONED, USED EXCEL. IF YOU NEED WITH FORMULAS, WILL DO THAT ALSO. THANK YOU

Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text ta copy ▼ B า 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 conditional Format . Cell Insert Delete Format Sort &Find & 2 ClearFe Select Edting Format Painter Formatting, as Table w styles. ▼ ㆆ ▼ Clipboard DE59 DC Alignment Number Cells DE DF DG DH DI DJ DK DL 59 60 61 62 63 64 65 1 PV 4 FV YEARS RATE ON LOAN 6 8.45% EXCEL-RATE(5,,-4,6) 34,995.00 4 2 COST OF WATCH YEARS PMT RATE FUTURE VALUE NO, AS FUTURE VALUE IS LESS THAN COST OF WATCH 67 68 69 70 71 72 73 74 75 76 4% $31,175.76 EXCEL-FV(4%/12,4*12,-600) 3 LOAN 15.8-2- LOAN AMOUNT YEARS RATE PMT ( INSTALME 13.8 13800000 30 5% $ 74,081.38 EXCEL-PMT(5%/12,30*12-13800000) 11 1 トーCALCULATOR ( LOAN OPTIONS | pv, fv, annuity i CAP STRU VALUE BOX DILUTION- DOLLAR COST AVG·MORTGAGE.. EXPO Sheet1 . Sheet2. Sh4( rences: x261 07-01-2019Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum ー E ゴWrap Text aCopy B า 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard DE95 DC Font Alignment Number Styles Cells Edting DE DF DG DH DI DJ DK DL 78 79 80 81 82 83 84 85 86 87 4 PV YEARS RATE FUTURE VALUE 1000 20 3% $ 1,806.11 EXCEL-FV(396,20,,-1000) 89 90 91 92 93 94 95 11 1 トーCALCULATOR ( LOAN OPTIONS | pv, fv, annuity i CAP STRU VALUE BOX DILUTION- DOLLAR COST AVG·MORTGAGE.. EXPO Sheet1 . Sheet2. Sh4( rences: x261 02:24 07-01-2019

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