Question: Can someone help me with these problems? You would like to have $4,500 in 4 years for a special vacation following graduation by making deposits
Can someone help me with these problems?


You would like to have $4,500 in 4 years for a special vacation following graduation by making deposits at the end of every six months in an annuity that pays 4.5% compounded semiannually. a. Use one of the formulas below to determine how much you should deposit at the end of every six months. r nt r P 1 + 1 A n n ' f P ' # F \"\"31 \"l b. How much of the $4,500 comes from deposits and how much comes from interest? a. In order to have $4,500 in 4 years, you should deposit $ at the end of every six months. (Do not round until the nal answer. Then round up to the nearest dollar.) b. $E| of the $4,500 comes from your deposits and $E| comes from interest. (Use the answer from part a to nd this answer. Round to the nearest dollar as needed.) The price of a home is $200,000. The bank requires a 15% down payment. The buyer is offered two mortgage options: 15-year xed at 7% or 30-year xed at 7%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 15-year option? Use the following formula to determine the regular payment amount. Flt] r -nt 1w n PMT= Find the monthly payment for the 15year option. 35D (Round to the nearest dollar as needed.) Find the monthly payment for the 30-year option. $ (Round to the nearest dollar as needed.) Calculate the total cost of interest for both mortgage options. How much does the buyer save in interest with the 15-year option? $D (Use the answers from parts 1 and 2 to nd this answer.)
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