Question

1a. Your uncle dies and your 70-year-old aunt receives $150,000 life insurance proceeds. She needs monthly income and expects to live for approximately 18 years. If she invests the insurance money, earning 7% compounded monthly, how much can she withdraw at the end of each month?

a.

$8,802.75

b.

$10,500.00

c.

$14,911.89

d. $1,223.25

1b. Determine your monthly payment on a 6-year $12,500 car loan at 5.75% interest.

a.	$13.07
	b.	$214.65
	c.	$152.15
	d.	$205.69

Answer 1