please be specific. 12) It took the Wilsons 5 years to save for the down payment...

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12) It took the Wilsons 5 years to save for the down payment on their home, they saved $1000 a month, and had $70,000 at the

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Answer 1

Answer #1

Ans:- we will use the RATE function of excel to find the answer.

Nper (No of periods) =5*12=60, Pmt (Monthly savings) = -$1000, PV=0, FV = $70,000 (because they has $70,000 at the end of year 5).

E10 A B с 1 2 3 Monthly Rate 0.51% 4 5 Yearly Rate 6.13% 6 E10 foc A B с 1 2 3 Monthly Rate =RATE(60,-1000,0,70000,0) 4 Сл Yearly Rate =C3*12

Therefore, the monthly rate is 0.51%, and the yearly rate is 6.13% ( compounded monthly).

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Answer 2

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