# 5. How much would you need to deposit in an account now in order to have $5,000...

## Question:

5. How much would you need to deposit in an account now in order to have $5,000 in the account in 5 years? Assume the account earns 2% interest compounded monthly.

10. You deposit $300 each month into an account earning 4% interest compounded monthly.

A. How much will you have in the account in 35 years?

B. How much total money will you put into the account?

C. How much total interest will you earn?

17. Suppose you want to have $300,000 for retirement in 35 years. Your account earns 6% interest.

A) How much would you need to deposit in the account each month?

B) How much interest will you earn?

22. You have $400,000 saved for retirement. Your account earns 10% interest. How much will you be able to pull out each month, if you want to be able to take withdraws for 15 years?

9. You want to be able to withdraw $40,000 each year for 30 years. Your account earns 6% interest.

A. How much do you need in your account at the beginning?

B. How much total money will you pull out of the account?

C.How much of that money is interest?

23. You want to buy a $13,000 car. The company is offering a 3% interest rate for 60 months (5 years). What will your monthly payments be?

28. You can afford a $1050 per month mortgage payment. You've found a 30 year loan at 7% interest.

A. How big of a loan can you afford?

B. How much of that money is interest?

32. You want to buy a $245,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan for the rest.

A. How much is the loan amount going to be ?

B. What will your monthly payments be if the interest rate is 5% ?

C. What will your monthly payments be if the interest rate is 6%?

**Related Book For**

## Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura