Question

Question 11 (0.2 points) Mary's 25th birthday is today, and she hopes to retire on her 65th birthday. She has determined that she will need to have $3,000,000 in her retirement savings account in order to live comfortably. Mary currently has no retirement savings, and her investments will earn 6% annually. How much must she deposit into her account at the end of each of the next 40 years to meet her retirement savings goal? Your Answer: Answer Hide hint for Question 11 Use the annuity due formula. Question 12 (0.2 points) You found your dream house. It will cost you $250000 and you will put down $35000 as a down payment. For the rest you get a 30-year 5.5% mortgage. What will be your monthly mortgage payment in $ (assume no early repayment)? Your Answer: Answer

Answer 1

Each deposit FVA:((1+r)^n-1)=r) Here, 6% 40 A Interest rate per annum B Number of years C Number of payments per per annum A:C Interest rate per period (r) BxC Number of periods (n) Future value of annuity (FVA) 6% 40 3,000,000 Each deposit $ 19,384.61 3000000:(((1+6%)^40-1):6%)

*Please rate thumbs up