In: Finance
WEEK 4 CORP FIN ASSINGMNET PART 2
Your employer contributes $100 a week to your retirement plan. Assume that you work for this employer for another 12 years and the applicable discount rate is 7.25%. Given these assumptions, what is this employee benefit worth to you today?
You anticipate saving $1,800 a year for each of the next 25 years (NOT$1,800 once but $1,800 in each year) and anticipate earning 8% interest per year. Assuming annual compounding, how much do you expect to have in your account after 25 years?
You are borrowing $19,500 to buy a car. The terms of the loan call for monthly payments for 5 years at 5% percent interest. What is the amount of each monthly payment?
You borrow $320,000 to buy a house. 30-year mortgage rates are 4.25% and payments are made monthly. How much will be your mortgage payment be?
Referring back to question #19, how much total interest will you paying over the life of the mortgage?
NO SCREEN SHOTS OR IMAGES OF RESPONSE. PLEASE TYPE YOUR ANSWER OR UPLOAD DOCUMENT IF REQUIREMENTS MENTIONED ABOVE ARE NOT MET I WILL GIVE A NEGATIVE RATING
Your employer contributes $100 a week to your retirement plan. Assume that you work for this employer for another 12 years and the applicable discount rate is 7.25%. Given these assumptions, what is this employee benefit worth to you today?
You anticipate saving $1,800 a year for each of the next 25 years (NOT$1,800 once but $1,800 in each year) and anticipate earning 8% interest per year. Assuming annual compounding, how much do you expect to have in your account after 25 years?
You are borrowing $19,500 to buy a car. The terms of the loan call for monthly payments for 5 years at 5% percent interest. What is the amount of each monthly payment?
You borrow $320,000 to buy a house. 30-year mortgage rates are 4.25% and payments are made monthly. How much will be your mortgage payment be?
Referring back to question #19, how much total interest will you paying over the life of the mortgage?
As it is not possible to upload a document, this question can only be answered by uploading screen shots. To explain what is happening in the screen shots, please see the formulae below:
Opening Balance = closing balance of the previous year
Interest = 0.0425/12*opening balance
closing balance = Opening balance + interest - PMT
Total interest = $246713.90