It is September 1st, 2019 and Richard Spender has a probelm... HE SPENDS TOO MUCH! Richard has
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Question:
Credit Card 1 $200
Credit Card 2 $200
Credit Card 3 $1,300
Credit Card 4 $50
Line of Credit $1,200
Car Loan $40,000
Mortgage $ 300,000
You have offered to consolidate all of Richard's debts into a single loan with a 10 year term and interest at 6% compunded monthly. Because he would like to pay as litttle as possible and will not accumulate any additional savings during the 10 years beyond what he is saving to meet his children's tuition expenses. Richard would like to make EQUAL payments at the end of each month that will save exactly enough to pay for his children's education and eliminate all his debts.
a) How much must richard save each month in the college savings plan?
b) How much must he pay each month towards his debts?
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
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