- Your client is 40 years old, and she wants to begin saving for
retirement, with the first payment to come one year from now. She
can save $5,000 per year, and you advise her to invest it in the
stock market, which you expect to provide an average return of 9%
in the future. If she follows your advice, how much money will she
have at 65?
- You have $50,000 to put as a down payment on a new house that
costs $350,000, and you have been quoted the following terms: 5%
Annual Percentage Rate (APR) for 30 years. If you decide to
purchase this home, what will your monthly payment be?
Additionally, over the life of the loan, what would your total
interest expense be?
Please show work and how to do it.