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You would like to purchase a vacation home when you retire 9 years from now. The current cost of the homes that interest you is $245,306; however, you expect their price to rise at 2.69% per year for the next 9 years. How much must you save each year in nominal terms (the same amount each year) for 12 years, starting next year, to just be able to pay for the vacation home if you earn 4.56% APR (compounded annually) on your investments?
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- You would like to purchase a vacation home when you retire 10 years from now. The current cost of the homes that interest you is $273,429; however, you expect their price to rise at 4.47% per year for the next 10 years. How much must you save each year in nominal terms (the same amount each year) for 14 years, starting next year, to just be able to pay for the vacation home if you earn 4.4% APR (compounded annually) on your investments?You want to save the down payment required to purchase a vacation home at the end of four years. If the required down payment is $75,000 and you can earn 6% a year on your savings account, how much do you need to set aside at the end of each year for the next four years?When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be earning 6% per year. Find PV Annuity: If you wish to do that for 10 years starting one year after you retire, what does the balance in your retirement account have to be when you retire? Find PV Annuity: If the account will be earning 3% per year, and you wish to do that for 20 years starting on the day you retire, what does the balance in your retirement account have to be when you retire?
- You decide to buy a house costing $6,000,000. You pay $1,000,000 down, and the remainder will be paid in monthly installments over 25 years at 3.9% compounded monthly. a) What is the monthly payment? b) What is the outstanding balance after making the 100 th payment? c) What is the equity after making the 100 th payment? d) How much of the 100 th payment will go to principal and how much to interest? e) How much interest will paid over the entire length of the loan?You can afford payments of $950 per month for the purchase of a house. a) What is the largest amount you can finance for this house at 3.2% APR for 30 years? (Round to the nearest dollar.) b) How much total will you be paying the loan company at the end of 30 years for this house if you are paying $950 per month for 30 years? c) Now you are curious what the payments would be if you financed the amount found in part a) at 3.2% APR for 20 years instead of 30 years. How much would your monthly payments be if you financed the amount you found in part a) for 20 years at 3.2% APR? (Round to the nearest dollar.) d) Using the payments you found from part c), how much total will you pay the loan company at the end of 20 years?Suppose you want to buy a $453,806 home. You can put $90,000 down and can finance at 4.1% APR Monthly for 30 years, but can only afford to pay $1,149, for the first five years, and have offered to make a balloon payment of $100,000 at the end of thirty years (your 360th payment). How much will your remaining payments be? (Assume all payments will be made at the end of each month, and that negative amortization is permitted.)
- Suppose at the end of 12 years you have $105,000. in your retirement account. You decide to leave the money in the account for another 25 years but add no money. For the last 5 years you work, you will move the account into a safer retirement that averages 4% annually, you will pay $5000 per month during those 5 years. What will the account be worth when you retire? Assume the account compounds monthly. $1,437,013.86 $1,228,992.98 $1,537,697.32 $1,128,667.71You are thinking about buying a rental property. Because of the difficulty getting a loan, you are going to pay $350,000 in cash for the house today. You think you can rent out the property for the next 10 years, receiving $1,400 in cash each month after your expenses and taxes. At the end of ten years, you believe you will be able to sell the property for $425,000. If your discount rate is 7.2% annually with monthly compounding, what is the NPV of the rental property? (Assume first payment is 1 month from today)You decide to buy a house costing $5,000,000. You pay $1,000,000 down, and the remainder will be paid in monthly installments over 30 years at 3.5% compounded monthly. What is the monthly payment? What is the outstanding balance after making the 100th payment? What is the equity after making the 100th payment? How much of the 100th payment will go to principal and how much to interest? How much interest will paid over the entire length of the loan?
- After making payments of $901.10 for 8 years on your 30 year loan at 8.3%, you decide to sell your home. What is the loan payoff?To save for a down payment on a home, suppose you decide to invest in an annuity that pays 7.0% annual interest, compounded annually. If you contribute $8,000 every year for 5 years, how much interest would you earn during the 5years? Enter your answer, rounded to the nearest cent, without the dollar sign or comma ($21,678.1235 should be entered as 21678.12.)2) You decide to buy a house costing $6,000,000. You pay $1,000,000 down, and the remainder will be paid inmonthly installments over 25 years at 3.9% compounded monthly. a) What is the monthly payment?b) What is the outstanding balance after making the 100the payment?c) What is the equity after making the 100the payment?d) How much of the 100the payment will go to the principal and how much to interest?e) How much interest will be paid over the entire length of the loan? TVM SOLVER