Question

Dawn Chin plans to buy a new vehicle. Her current vehicle will bring 6,000 as a trade-in. She can pay another $2,500 as a down payment. The vehicle she wants to buy costs $23,700. What would be her monthly payments for a four-year loan at 4.55%?

Multiple Choice

• $346.96

• $345.64

• $538.95

• $540.98

Mark Moreno is buying a house. The house costs 350,000. He plans to put $70,000 down and borrow the balance at 3.86% for a 30 year fixed rate mortgage. Calculate the principal plus interest portion of his mortgage payment.

Multiple Choice

• $1,310.05

• $1,637.56

• $1642.83

• $1314.26

You plan to have $1,000,000 in your retirement account when you retire in 28 years. Assume an average annual rate of return of 9.8% compounded monthly. How much will you have to save at the end of each month?

Multiple Choice

• $568.05

• $563.45

• $490.75

• $495.04

Danielle Desportes plans to invest in a rental property worth $280,000. She plans to hold the property for 4 years and expects to sell it for $294,000 at the end of the fourth year. She estimates that the average monthly net income from the property will be $3,250. Her target return is 8%. Calculate the net present value of the investment.

• $346,840.87
• $347,728.38
• $66,840.87correct answer
• $66,728.38

You plan to have $1,000,000 in your retirement account when you retire in 40 years. Assume an average annual rate of return of 10.5% compounded monthly. How much will you have to save at the beginning of each month?

Multiple Choice

• $88.08

• $88.86

• $134.53

• S135.70

Answer 1

The above questions are solved and explained here under, and then correct option is given:

The questions are solved using excel formulas.

1) Calculation of Monthly payments

Principal amount (after down payment) = 15,200

Number of instalments = 12 * 4years = 48 instalments

Rate of ineterest (annual) =4.55%

Formula =pmt(Rate of ineterest/12,Number of instalments,Principal amount)

= $346.96

Therefore, $346.96 is the correct option.

2) Calculation of Principal plus inteerst portion using excel formula

Principal amount(after down payment) = 280,000

Rate of interest = 3.86%

Number of instalments = 360

Payment of monthly instalments using pmt formula =pmt(Rate of interest/12,Number of instalments,Principal amount)

=$1314.26

Therefore, corrent option of monthly instalment is $1314.26

As there is nothing specified which questions to be solved, the above questions are solved. Thanks!!!