Finance Homework-
Your grandmother has been putting $3,000 into a savings account on every birthday since your first (that is, when you turned 1). The account pays an interest rate of 7 %. How much money will be in the account on your 18th birthday immediately after your grandmother makes the deposit on that birthday?
You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 10% per year. What will your annual payment be if you sign up for this mortgage?
Your grandmother bought an annuity from Rock Solid Life Insurance Company for $280,000 when she retired. In exchange for the $280,000, Rock Solid will pay her $35,000 per year until she dies. The interest rate is 3%. How long must she live after the day she retired to come out ahead (that is, to get more in value than what she paid in)?
She must live at least years.