Question

1. Just before his first attempt at bungee jumping, John decides
to buy a life insurance policy. His annual income at age 30 is
$39,000, so he figures he should get enough insurance to provide
his wife and new baby with that amount each year for the next 35
years. If the long-term interest rate is 6.1%, what is the present
value of John's future annual earnings? (Round your answer to the
nearest cent.)

$

Rounding up to the next $50,000, how much life insurance should he
buy? (Round your original answer to the nearest $50,000.)

2. In the following ordinary annuity, the interest is compounded
with each payment, and the payment is made at the end of the
compounding period.

You and your new spouse each bring home $1500 each month after
taxes and other payroll deductions. By living frugally, you intend
to live on just one paycheck and save the other in a mutual fund
yielding 7.95% compounded monthly. How long will it take to have
enough for a 20% down payment on a $155,000 condo in the city?
(Round your answer to two decimal places.)

yr

Answer #1

In the following ordinary annuity, the interest is compounded
with each payment, and the payment is made at the end of the
compounding period.
You and your new spouse each bring home $1500 each month after
taxes and other payroll deductions. By living frugally, you intend
to live on just one paycheck and save the other in a mutual fund
yielding 7.86% compounded monthly. How long will it take to have
enough for a 20% down payment on a $165,000...

In the following ordinary annuity, the interest is compounded
with each payment, and the payment is made at the end of the
compounding period. You and your new spouse each bring home $1500
each month after taxes and other payroll deductions. By living
frugally, you intend to live on just one paycheck and save the
other in a mutual fund yielding 7.91% compounded monthly. How long
will it take to have enough for a 20% down payment on a $175,000...

Part A.
You and your new spouse each bring home $1400 each month after
taxes and other payroll deductions. By living frugally, you intend
to live on just one paycheck and save the other in a mutual fund
yielding 7.93% compounded monthly. How long will it take to have
enough for a 20% down payment on a $175,000 condo in the city?
(Round your answer to two decimal places.)
Part B.
Calculate the present value of the annuity. (Round your...

1. In the following ordinary annuity, the interest is compounded
with each payment, and the payment is made at the end of the
compounding period.
Find the amount of time needed for the sinking fund to reach the
given accumulated amount. (Round your answer to two decimal
places.) $215 monthly at 5.8% to accumulate $25,000
Please provide number of years:
2. In the following ordinary annuity, the interest is compounded
with each payment, and the payment is made at the...

A Married Couple with Children Address Their Life Insurance
Needs Joseph and Marcia Michael of Athens, Georgia, are a married
couple in their mid-30s. They have two children, ages 5 and 3, and
Marcia is pregnant with their third child. Marcia is a part-time
book indexer who earned $31,000 after taxes last year. Because she
performs much of her work at home, it is unlikely that she will
need to curtail her work after the baby is born. Joseph is...

A Married Couple with Children Address Their Life Insurance
Needs
Joseph and Marcia Michael of Athens, Georgia, are a married
couple in their mid-30s. They have two children, ages 5 and 3, and
Marcia is pregnant with their third child. Marcia is a part-time
book indexer who earned $31,000 after taxes last year. Because she
performs much of her work at home, it is unlikely that she will
need to curtail her work after the baby is born. Joseph is...

5. Doogie lives for four periods. He has just completed the
first period of his life (by getting his high school diploma).
Doogie is trying to decide on his future career path. He’s very
good at opening things up and fixing them, so he has narrowed his
options to two possible paths. He will either become an auto
mechanic or a brain surgeon. •If Doogie becomes an auto mechanic,
he will earn $25,000 as an apprentice in period 2, $50,000...

1. A homeowner planning a kitchen remodeling can afford a $800
monthly payment. How much can the homeowner borrow for 3 years at
6%, compounded monthly, and still stay within the budget? (Round
your answer to the nearest cent.)
2. The problem describes a debt to be amortized. (Round your
answers to the nearest cent.)
A man buys a house for $380,000. He makes a $150,000 down payment
and amortizes the rest of the purchase price with semiannual
payments over...

You have approached Commonwealth Bank for a loan to buy a house.
The bank offers you a $500 000 loan, repayable in equal monthly
instalments at the end of each month for the next 30 years.
Required:
a. If the interest rate on the loan is 4.5% per annum, compounded
monthly, what is your monthly repayment (to the nearest
dollar)?
b. What is your weekly payment if you wish to pay weekly
instalments and the interest rate is compounding weekly?...

1. John invested $20,000 fifteen years ago with an insurance
company that has paid him 8 percent (APR), compounded quarterly
(every 3 months). How much interest did John earn over the 15
years? a. $2,416.08 b. $45,620.62 c. $24,000.00 d. $28,318.95 e.
$65,620.62
2. You are running short of cash and really need to pay your
tuition. A friend suggests that you check out the local title pawn
shop. At the shop they offer to loan you $5,000 if you...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 16 minutes ago

asked 22 minutes ago

asked 25 minutes ago

asked 32 minutes ago

asked 37 minutes ago

asked 45 minutes ago

asked 45 minutes ago

asked 54 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago