Yoursquove just purchased your first home for 360000 your


1. a. You’ve just purchased your first home for $360,000! Your 30 year mortgage is $300,000. Your annual mortgage payments are $24,000. What interest rate is the bank charging you?

b.If instead you had the choice of making monthly payments of $2,000 for 30 years, what would the interest rate be?

2a. Assume that you are now 30 years old. You would like to retire at age 65 and have a retirement fund of $1,000,000. You already have $10,000 at age 30 in retirement savings (401K,IRA). You expect to earn 5% per year. The amount of money you must set aside each month to reach your retirement goal is:

b. At 65, if the appropriate discount rate is 7%, what amount can you get as an annuity for the next 25 years if you want to exhaust your savings by your death at 90?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Yoursquove just purchased your first home for 360000 your
Reference No:- TGS01176753

Expected delivery within 24 Hours