Question

A) Justin finished paying his parents back the $30,400 he borrowed on September 17, 2012. they had agreed upon an interest rate of 3.20% and that he would make payments every month. how large were his payments?

B) abby's retirement account has $112,500 and it earned 5.2%. how many years ago did she open the account if she's been investing $554 every month since then?

C) Olivia intends to retire on september 17, 2042. Olivia is committed to set aside $713 at the end of every month and expects to earn 8.7% in her account. how much will she have at retirement?

D) Natalie is paying her parents $1138 every quarter until September 17, 2026 to repay a loan of $21,200 made today. what is the agreed upon interest rate?

E)Ethan is going to be paying his parents $42 every week until September 17, 2025 to repay the loan made today. if the agreed upon interest rate is %6.6, how much is he borrowing?

Answer 1

A)
PV = $30,400
Nper = (2020 - 2012) * 12 = 96
Rate = 3.20% / 12
FV = 0

Monthly payment can be calculated by using the following excel formula:
=PMT(rate,nper,pv,fv)
=PMT(3.20%/12,96,-30400,0)
= $359.35

Monthly payment = $359.35

B)
FV = $112,500
Rate = 5.2%/12
PMT = $554
PV = 0

Number of years calculated by using the following excel formula:
=NPER(rate,pmt,pv,fv)
=NPER(5.2%/12,554,0,-112500)/12
= 12.17 Years

Number of years = 12.17 Years

Note: Post the rest of the questions separately.