1. A savings fund currently contains $300,000. It is decided to pay out this amount with 1.8% interest compounded monthly over a 5-year period. What are the monthly payments?
2. What is the monthly payment on a $150,000, 30-year mortgage at 4.8% interest compounded monthly?
3. Elisa, age 60, is currently in the 30% tax bracket and has $30,000 in a traditional IRA that earns 6% interest compounded annually. She anticipates being in the 35% tax bracket 5 years from now.
(a) How much money will Elisa have after paying taxes if she withdraws her money now?
(b) How much will Elisa have after paying taxes if she waits 5 years and then withdraws the money from the account?