How much of that money is interest how much would you need, Financial Management

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How much of that money is interest how much would you need

How much of that money is interest?

1) You want to buy a $31,000 car. The company is offering a 3% interest rate for 48 months (4 years). What will your monthly payments be?

2) Suppose you want to have $800,000 for retirement in 30 years. Your account earns 5% interest.

a) How much would you need to deposit in the account each month?

b) How much interest will you earn?

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