Question: Please show all formulas and work done for every problem Problem 6:Financing A Home A couple purchased a $180,000 house. They made an initial down

Please show all formulas and work done for every problemPlease show all formulas and work done for every problem Problem 6:Financing

Problem 6:Financing A Home A couple purchased a $180,000 house. They made an initial down payment of $20,000 and secured a mortgage with interest charged at the rate of 8% per year on the unpaid balance Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will they be required to make? Problem 7: A city has $2.5 million worth of school bonds that are due in 20 years and has established Sinking Funds a sinking fund to retire this debt. If the fund earns interest at the rate of 7% per year compounded annual y what amount must be deposited annually in this fund? Problem 8: g Funds A corporation wishes to establish a sinking fund to retire a $200,000 debt that is due in 10 years. If the investment will earn interest at the rate of 9% per year compounded quarterly, find the amount of the quarterly deposit that must be made in order to accumulate the required sum. Problem 9: Carl is the beneficiary of a $20,000 trust fund set up for him by his grandparents. Under Trust Funds the terms of the trust, he is to receive the money over a 5-year period in equal installments at the end of each year. If the fund earns interest at the rate of 9% per year compounded annually, what amount will he receive each year? Problem 10:Sinking Funds The management of a brokerage firm anticipates a capital expenditure of $26,000 in 3 years time for the purpose of purchasing new fax machines and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 10% per year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund. Problem 11: Keogh Accounts A self-employed individual wishes to accumulate a retirement fund of $250,000. How much should this person deposit each month into a Keogh account, which pays interest at the rate of 8.5% per ear compounded monthly, to reach this goal upon retirement 25 years from now

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!