2. A family member is thinking about funding his granddaughter’s university education in 8 years when she is expected to enroll at UWI, St. Augustine. He opens a special savings account, where he can receive a lump sum in 8 years. If he is desirous of receiving $60,000 in 8 years when his granddaughter is matriculating, how much would you advise him to deposit in the savings account monthly if annual interest rate is 6%? Show all working.

3. As a prospective car-owner, you have researched the automobile market and you are attracted by two offers. A $250,000 BMW X-series and a Mercedes C-series with two different repayment schedules offered by the respective financiers.

The repayment schedule for the BMW X-series requires a down payment of 10% while the repayment schedule for the Mercedes C-series requires a down payment of 15%. If the repayment is over a period of 10 years at an annual loan rate of 7%, what would be the monthly repayment amount for both schedules? Assume that the monthly repayment starts 1 month after the mortgage contract is signed and the down payment made. Show all calculations.

Answer rating: 100% (QA)

Sure lets tackle the second question about the repayment amounts for the BMW Xseries and Mercedes Cs... View the full answer