Jordan's parents deposited $75,000 at age 7 into Bank A that pays 5%/year interest compounded semiannually....

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Jordan's parents deposited $75,000 at age 7 into Bank A that pays 5%/year interest compounded semiannually. At age 18, they withdrew the money to use $100,000 of it for college expenses and deposited the rest into Bank B that pays 6.12%/year interest compounded contínuously until she graduates at age 22. She gets hired upon graduation and to get to work she buys a $40,757.19 car by using all the money in Bank B as down payment and making quarterly payments for the loan that charges 8.25%/year interest for 6 years. The moment her car loan is amortized. She decides to open an account in Bank C that pays 6.71%/year interest and she deposits $500 every month until age 47 when she buys a $629,418.07 house by using all the money in Bank C as down payment and securing a 30-year mortgage with 7.67%/year interest compounded monthly. Jordan retires at age 65 and sells her house for $850,906.49. If Jordan adds her equity on top of her retirement account that she wants to withdraw $12,000 every month until age 90, then how much she needs to deposit into her retirement account during her employment? AND what was the size of her car payments? Jordan's parents deposited $75,000 at age 7 into Bank A that pays 5%/year interest compounded semiannually. At age 18, they withdrew the money to use $100,000 of it for college expenses and deposited the rest into Bank B that pays 6.12%/year interest compounded contínuously until she graduates at age 22. She gets hired upon graduation and to get to work she buys a $40,757.19 car by using all the money in Bank B as down payment and making quarterly payments for the loan that charges 8.25%/year interest for 6 years. The moment her car loan is amortized. She decides to open an account in Bank C that pays 6.71%/year interest and she deposits $500 every month until age 47 when she buys a $629,418.07 house by using all the money in Bank C as down payment and securing a 30-year mortgage with 7.67%/year interest compounded monthly. Jordan retires at age 65 and sells her house for $850,906.49. If Jordan adds her equity on top of her retirement account that she wants to withdraw $12,000 every month until age 90, then how much she needs to deposit into her retirement account during her employment? AND what was the size of her car payments?

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Solution Part 1 Calculation of Amount in Bank A at age 18 Amount Deposited 75000 Rate 5 compunded se... View the full answer