Question

1) How much money will you accumulate by the end of 30 years if you invest $200 per month and you start out with $30 000 in the bank? Assume the interest rate your money earns is 8% per year and you start saving next month.

a) $55 505

b) $30 000

c) $628 131

d) $626 144

2) How much is the monthly payment on a $250 000 loan for 15 years at 10% interest per year? Assume first payment is at the end of the month.

a)$2 687

b)$3 290\

c)$25 000

d)$1 501

3) S.L. Umlord is considering buying a building that produces annual income after expenses of $7 000. He planned to keep the investment for 10 years and wants a 10% return on his investment each year. He will sell the building for 250 000. How much should he pay for the building?

a) $132 938

b) $128 317

c) $143 012

d) $139 398

Answer 1

Formulae

Formulae as above