Tutors Answer Your Questions about Money Word Problems (FREE)
Question 1205776: Can you help me with this question please?
14) Rajesh and Priya plan to retire at age 60 with a retirement income of $48,000 a year from their savings. Rather than pay themselves the whole amount at the beginning of each year, they have decided that withdrawing payments of $12,000 at the beginning of each quarter of gives them the right balance of liquidity and maximized interest earnings. They feel they can safely earn an interest rate of 5.75%, compounded quarterly, on their money and they are budgeting based on the prediction that they will live until they are 90 years old.
How much money will they have to have saved by the time they are 60 and ready to begin their retirement, in order fulfill this plan? [Blank-1]
If the same total calculated above was to be saved, but no interest earned whatsoever, how much would be available to live on each quarter? [Blank-2]
If the full 30 years are lived and quarterly budget spent, how much money in total will have been utilized in retirement? [Blank-3]
How much will have been earned in interest? [Blank-4]
Question 15)
Now that Rajesh and Priya have their saving goal calculated, and rounded up to the nearest dollar, they want to start budgeting to reach that goal. They are 40 years old currently, so they have just 20 years to save up the total nest egg retirement amount they calculated. If they assume the same interest rate, and compound frequency, but make deposits into their savings at the beginning of every month, how much would their deposit have to be each month to satisfy their retirement nest egg goal on time?
If they assume the same interest rate and compound frequency, but make deposits into their savings at the beginning of every month, how much would their deposit have to be each month to satisfy their retirement nest egg goal on time?[Blank-1]
How much interest will be earned? [Blank-2]
The answers to the questions should contain only the following characters: 0 1 2 3 4 5 6 7 8 9 .
No spaces, commas, dollar or percentage signs. These characters will cause your answer to be graded as incorrect.
Dollar amount answer should be rounded up to the whole dollar (no cents/decimals).
Interest rate answers should be rounded up, and include two decimal places
Click here to see answer by ikleyn(52754)   |
Question 1206142: The Taylors have purchased a $320,000 house. They made an initial down payment of $10,000 and secured a mortgage with interest charged at the rate of 6%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to make? (Round your answer to the nearest cent.)
$
What is their equity (disregarding appreciation) after 5 years? After 10 years? After 20 years? (Round your answers to the nearest cent.)
5 years $
10 years $
20 years $
Click here to see answer by Theo(13342)  |
Question 1206192: Tara is saving for an overseas trip. Her taxable income is usually about $20000 . She estimates that
she will need $5000 for the trip, so she is going to do some extra work to raise the money. How
much extra will she need to earn in order to have $5000 after tax?
Click here to see answer by Theo(13342) |
Question 1206523: Bert invests 770 dollars now, and 580 dollars in 5 years. Ten years after the first investment, the accumulated value of the combined investments is 3640 dollars. What are the possible effective rates of interest? (If you find more than one, list them separated by commas.
Click here to see answer by ikleyn(52754) |
Question 1206524: sammy is selling widgets. If he sells 1 widget, it costs him $1 to produce it and he can sell it for $10. If he sells 2 widgets, it costs him $2 to produce 2 widgets, but he can only get $9 for each widget. It costs $1 to produce each widget. The average price decreases by $1 for every extra widget sold. How many widgets should sammy sell to maximise his profit?
Click here to see answer by ikleyn(52754) |
Question 1199027: 1) A man had two employments on the same day with the following salary condition:The first employment is #300000 per annum with annual imcrement of #12000. The second employment with annual salary of #280000 and the annual increment of #15000. The man decided that he will accept the employment that will give him more earnings in the first 15years of service. Which employment should he accept?
2)A man earns a salary of #2500 per annum. If a rise of #500 is given at the end of each year, find
a) the total amount the man will earn in 18years
b) the amount the man will earn in the 20th year
Click here to see answer by mananth(16946)  |
Question 1206578: You deposit $6000 into an account that earns 5% compounded annually. A friend deposits $5750 into an account that earns 4.95% annual interest, compounded continuously. Will your friend's balance ever equal yours?
Click here to see answer by ikleyn(52754) |
Question 1206582: Q;A loan of $ 10,000 is amortized by equal annual payments for 30 years at an effective annual interest rate of 13 %. Determine the year in which the interest portion of the payment is most nearly equal to one-third of the payment.
How do i find the interest portion of the payment most nearly equal to 1/3 of the payment.
Click here to see answer by Theo(13342) |
Question 1206586: If you need $50,000 eight years from now, what is the minimum amount of money you need to deposit into a bank account that pays 6% annual interest, compounded (give your answers to the nearest cent):
(a) annually? $
(b) monthly? $
(c) daily (assuming 365 days in a year)?
Click here to see answer by math_tutor2020(3816) |
Question 1206588: Jessica borrowed $3300 from the bank in order to buy a new piano. She will pay if off by equal payments at the end of each week for 2 years. The interest rate is 8% compounded weekly. Determine the size of payments, and the total interest paid.
Click here to see answer by Theo(13342) |
Question 1206588: Jessica borrowed $3300 from the bank in order to buy a new piano. She will pay if off by equal payments at the end of each week for 2 years. The interest rate is 8% compounded weekly. Determine the size of payments, and the total interest paid.
Click here to see answer by math_tutor2020(3816) |
Question 1206588: Jessica borrowed $3300 from the bank in order to buy a new piano. She will pay if off by equal payments at the end of each week for 2 years. The interest rate is 8% compounded weekly. Determine the size of payments, and the total interest paid.
Click here to see answer by ikleyn(52754) |
Question 1206601: Starting on July 1, 2000, Peter borrows $7000 each year for 4 years from his dear Aunt May to pay for college. (Note: the last date that he borrows money is July 1, 2003.) From the beginning, Aunt May agreed to defer all interest on the loans until Peter finds a job; i.e. Peter's loans will not accumulate any interest until the first day he starts working. After that, Peter will be charged 8.6 percent compounded semiannually, and he will pay Aunt May back with 14 equal semiannual payments, the first coming 6 months after he starts his job. Peter finds a job as a photographer for a local newspaper, and his first day of work is July 1, 2004. For tax reasons, Peter needs to compute the total amount of interest that he will pay to Aunt May in the year 2007. How much in interest did Peter actually pay in 2007?
Click here to see answer by Theo(13342) |
Question 1206601: Starting on July 1, 2000, Peter borrows $7000 each year for 4 years from his dear Aunt May to pay for college. (Note: the last date that he borrows money is July 1, 2003.) From the beginning, Aunt May agreed to defer all interest on the loans until Peter finds a job; i.e. Peter's loans will not accumulate any interest until the first day he starts working. After that, Peter will be charged 8.6 percent compounded semiannually, and he will pay Aunt May back with 14 equal semiannual payments, the first coming 6 months after he starts his job. Peter finds a job as a photographer for a local newspaper, and his first day of work is July 1, 2004. For tax reasons, Peter needs to compute the total amount of interest that he will pay to Aunt May in the year 2007. How much in interest did Peter actually pay in 2007?
Click here to see answer by ikleyn(52754) |
Question 1206600: Suppose you can afford to pay at most $2650 per month for a mortgage payment. If the maximum amortization period you can get is 20 years, and you must pay 6% interest per year compounded annually, what is the most expensive house you can buy? How much interest will you have paid to the lender at the end of the loan?
Click here to see answer by Theo(13342) |
Question 1206596: Suppose you can afford to pay at most $1450 per month for a
mortgage payment. If the maximum amortization period you can
get is 25 years, and you must pay 8
What is the monthly interest rate corresponding to the effective
annual rate?
rm =
What is the price of the most expensive house you can buy?
What is the total interest paid?
(you will lose 25
Click here to see answer by ikleyn(52754) |
Question 1206595: Suppose you can afford to pay at most $1650 per month for a
mortgage payment. If the maximum amortization period you can
get is 5 years, and you must pay 5
What is the monthly interest rate corresponding to the effective
annual rate?
What is the price of the most expensive house you can buy?
What is the total interest paid?
Click here to see answer by ikleyn(52754) |
Question 1206609: You deposit $6000 into an account that earns 7% compounded annually. A friend deposits $5500 into an account that earns 6.95% annual interest, compounded continuously. Will your friend's balance ever equal yours? If so, when? If not, enter NEVER.
Click here to see answer by ikleyn(52754) |
Question 1206584: How much must be placed each month into a retirement account earning 7% compounded monthly if the value of the account is to reach $ 1,000,000 in 20 years? and If the account continues to earn 7% after retirement, how much per year will the account earn?
Click here to see answer by ikleyn(52754) |
Question 1206632: Please help me solve this
Suppose you can afford to pay at most $600 per month for a mortgage payment. If the maximum amortization period you can get is 25 years, and you must pay 6.5% interest per year compounded annually, what is the most expensive house you can buy? How much interest will you have paid to the lender at the end of the loan?
What is the monthly interest rate corresponding to the effective annual rate?
What is the price of the most expensive house you can buy?
What is the total interest paid?
Click here to see answer by ikleyn(52754) |
Question 1206647: Suppose you can afford to pay at most $1000 per month for a mortgage payment. If the maximum amortization period you can get is 20 years, and you must pay 7.5% interest per year compounded monthly, what is the most expensive house you can buy? How much interest will you have paid to the lender at the end of the loan?
What is the monthly interest rate corresponding to the effective annual rate?
What is the price of the most expensive house you can buy?
What is the total interest paid?
Click here to see answer by ikleyn(52754) |
Question 1206664: How much must be deposited today into the following account in order to have $ 30 comma 000 in 5 years for a down payment on a house? Assume no additional deposits are made.
An account with monthly compounding and an APR of 5%
Click here to see answer by Theo(13342) |
Question 1206658: Starting on July 1, 2000, Peter borrows $7600
each year for 4 years from his dear Aunt May to pay for college. (Note: the last date that he borrows money is July 1, 2003.) From the beginning, Aunt May agreed to defer all interest on the loans until Peter finds a job; i.e. Peter's loans will not accumulate any interest until the first day he starts working. After that, Peter will be charged 8 percent compounded semiannually, and he will pay Aunt May back with 14 equal semiannual payments, the first coming 6 months after he starts his job. Peter finds a job as a photographer for a local newspaper, and his first day of work is July 1, 2004. For tax reasons, Peter needs to compute the total amount of interest that he will pay to Aunt May in the year 2007. How much in interest did Peter actually pay in 2007?
Click here to see answer by ikleyn(52754) |
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