1. 1.  A representative from the bank speaks with you about opening a savings product.  You would be guaranteed at least a 3.5% return for the next 10 years when you agree to add $25.00 each month for the entire time.  Given this information and that you meet the minimum monthly contribution requirement, what would be your total accumulated value at the end of the 10 years?  You may use a calculator to work the problem or an online calculator to check your work, but YOU MUST SHOW YOUR STEPS TO SOLVING THIS PROBLEM.

 

1. 2.  If you would like to start with a modest retirement goal of $30,000 of income in retirement after working for 40 years, how much do you need to save monthly with an estimated 6% return to meet this goal?  You may use a calculator to work the problem or an online calculator to check your work, but YOU MUST SHOW YOUR STEPS TO SOLVING THIS PROBLEM.

 

1. 3. Consider Purchasing a Vehicle for $20,000.  You are offered three options for repayment, and you must determine which option is best. First, you will owe 6% in taxes and fees, so make sure you calculate this in the amount you finance?

 Option 1

You are offered a loan at 6% for the full amount over 5 years (60 months).

1.  How much will you finance?
2.  What is the monthly payment?
3.  What is your total repayment?
4.  How much interest do you end up paying for financing?

 

Option 2

You are offered a loan at 7% if you agree to make a $1000 downpayment (84 months)

1.  How much will you finance?
2. How much is your monthly payment?
3.  What is the total repayment?
4.  How much interest do you end up paying for financing?

 

Option 3

You are offered a loan at 8% for the full amount for 7 years (84 months)?

1.  How much will you finance?
2. How much is your monthly payment?
3. What is the total repayment?
4.  How much interest do you end up paying for financing?

 

  Which option will cost you the most monthly?

1.  Which option will cost you the most in the long run (most interest paid)?

 Which is the better deal for you?  Explain in a complete sentence why you chose this deal.

Answer rating: 100% (QA)

Lets break down each of these financial scenarios step by step 1 Savings Product You contribute 25 each month for 10 years The interest rate is 35 To ... View the full answer