Businness 201 question

John is a 37-year-old Computer Programmer; He commuted to Down Town Brooklyn to work Monday-Friday, and every afternoon; he stops in the local Starbucks to drink his well-deserved Grande Carmel Macchiato Freshly steamed milk with vanilla syrup and espresso, topped with caramel sauce. He also eats at a Big Mac You (and I mean you) are both his Financial Advisor and best friend; as his best friend, you have recommended John to stop drinking coffee and quit the MacCrazy life, and to do it Cold Turkey.

You also recommend him to finally move in with his fiancee and save some money and invest it in an annuity earning a 3.10% % annual until he reaches his early retirement. His payments are made at start-of-the-month, and his return will be paid when he reaches old retirement age. Calculate the value of the annuity.

*** Caramel Macchiato price in NYC - $5.12

*** Pack of cigarettes price in NYC - $14

*** Big Mac Meal in NYC $3.99

Last night Uncle Dave called John and told him that he would sell his. The price is BRL$595,000 and Uncle Dave wants to give John the first option to buy at a 10% discount. And because he is his only nephew, he is willing to finance the loan at 2.062% for 30 years.

John thinks it may be the right time to invest in the Real Estate market, but he doesn't know if he can afford it. John called you to run the numbers for him, and to find out is he can provide the apartment.

1. Can he afford the apartment in Rio?.
2. How much is the Monthly Payment?
   • John retires at 67

TODAY The Brazilian Currency values BRL4 5.59 for 1USD