You have saved $$500,000$ for retirement. Your account earns $6\%$ interest. How much will you be able to pull out each month, if you want to be able to make withdrawals for $20$ years?

Loans Problems

$9.$ You can afford a $$700$ per month mortgage payment. You've found a $30$ year loan at $5\%$ interest.

a$.$ How big of a loan can you afford?

b$.$ How much total money will you pay the loan company?

c$.$ How much of that money is interest?

$10.$ You want to buy a $$25,000$ car. The company is offering a $2\%$ interest rate for $48$ months $(4$ years$).$ What will your monthly payments be$?$

$11.$ Lynn bought a $$300,000$ house, paying $10\%$ down, and financing the rest at $6\%$ interest for $30$ years.

a$.$ Find her monthly payments.

b$.$ How much interest will she pay over the life of the loan?

$12.$ DeShawn bought a car for $$24,000$ three years ago. The loan had a $5$ year term at $3\%$ interest rate. How much does he still owe on the car?