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%?
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.
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?
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.
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?
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)
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)
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!!!
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