# Annuity Payments Go to www.fcfcorp.com/onlinecalc.htm. Use the calculator to solve this problem. If you have $1,500,000 when

## Question:

Annuity Payments Go to www.fcfcorp.com/onlinecalc.htm. Use the calculator to solve this problem. If you have $1,500,000 when you retire and want to withdraw an equal amount for the next 30 years, how much can you withdraw each year if you earn 7 percent? What if you earn 9 percent?

Annuity Payments The St. Louis Federal Reserve Board has files listing historical interest rates on their web site www.stls.frb.org. Follow the link for FRED/data, then Interest Rates. You will find a listing for the Bank Prime Loan Rate. The file lists the monthly prime rate since January 1949 (1949.01). What is the most recent prime rate? What is the highest prime rate over this period? If you bought a house for $150,000 at the current prime rate on a 30-year mortgage with monthly payments, how much are your payments? If you had purchased the house at the same price when the prime rate was its highest, what would your monthly payments have been?

Loan Amortization CMB Mortgage Services, located at www.cmbmortgage. com, has a financial calculator that will prepare an amortization table based on your inputs. Follow the Mortgage Calculator link and then What are my monthly payments? link. You want to buy a home for $200,000 on a 30-year mortgage with monthly payments at the rate quoted on the site. What percentage of your first months payment is principal? What percentage of your last months payment is principal? What is the total interest paid on the loan?**Related Book For**

## Essentials Of Corporate Finance

ISBN: 9780073382463

7th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan