MATH 110| FINANCE HW #3 (PGS 1 - 21)
Name.
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3 points each. Show all work and round appropriately
1. Randi is buying a home for $165,000. She makes a down payment of 20% and finances the rest at 4.7% interest for 20 years.
a. What amount is Randi borrowing? (1 pt) 105000X.02 14S,000-33,000 -130,000 b. What will the monthly payment be? 3.3000
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c. How much interest will be paid over the life of the loan? (2 pts) QUq UIXiaXaO"=2o3853.U0
2. Blake has $360,000 in his retirement account. If he wants to make withdrawals for 15 years after retiring, how much can he withdraw on a monthly basis if the account earns 8% interest? 3CeO UOO=W]1-l1+ 0S 12
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3. Dave has put $40 a month into a college fund for his son for the past 10 years. If the account earns 4.9% interest, how much money is in the college fund? A=UOCClF:oy412o-1 12 176.17
back a total of $3916.80. What was the interest rate? P=3a60 A=P4 Prt E=y 391U.TO=3&D0+32OCx rx Y A=391Q.10 311a.qO 3&oi#1Q 80Or 32003v0 r= 10.6%= I 2 oor/1a.
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12,500
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MATH 110 | FINANCE HW #3 (PGS 1 - 21)
5. You decide to set aside some money for a new car, so you invest $4000 into an account earning 2.5% interest compounded quarterly. You plan to purchase the car in five years. How much money will you have in your account? /o0a'h 2U 14 .02S 530.8
6. Jack wants to be able to withdraw $8200 every quarter for 22 years from his retirement account. If the account earns 7.2% interest, how much money does he need in his account when he reti p=%200[1~(1+-02)-s u .077 PM $3Go7ni.1s
7. Mary is 35 years old. She wants to have $700,000 in her retirement account when she retires at age 65. If the account earns 6.3% interest, how much does she need to deposit each month to reach her retirement goal? 7D0.0OO =DEL lt ) 2
D>+6S7 6l rno.) 12 8. On the day she was born, Olivia's grandparents deposited $2000 in an account earning 2% interest compounded monthly. They plan to give her the money in the account when she
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9. Jeff landed his first "real" job and has budgeted $700 a month for a house payment. He can get a 30-year loan at 5.1% interest. How(much can he spend on a house and remain within his budget? So.+(7~1]QaL2d ~12.30
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MATH 110 | FINANCE HW #3 (PGS 1 - 21)
10. Micah deposited $100 a month into his retirement account for 40 years.
a. If his retirement account earned 6.6% interest, how much money did Micah have in his account when he retired? noo:+17J oO12U U 8 l 2
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b. How much interest will he earn during his working years? (2 pts) 10O X 12 x UU = US,0Oo
c. Now that Micah has retired, he wants to take