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I am in need of assistance confirming the following questions. I-(Answered)

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I am in need of assistance confirming the following questions. I have provided the following answers. If possible, please provide step by step process (financial Calculator) that you used to get the answer.


I am in need of assistance confirming the following questions. I have provided the following answers.

 

If possible, please provide step by step process (financial calculator) that you used to get the answer

 

If Art wants $1,000,000 in 30 years. He has $85,000 currently saved and wants to know how much

 

he should invest at the beginning of each month if he can earn 8.8% on his investment?

 


 

$26,756

 

$26,561

 

$101.58

 

$102.32

 

None of the above

 


 

You win the lottery and are given the option of receiving $250,000 now or an annuity of $25,000 at

 

the end of each year for 30 years. Which of the following is correct?

 


 

You cannot choose between the two without first computing future values.

 

You will always choose the lump sum regardless of interest rates.

 

You will choose the lump sum payment if the interest rate is 7%.

 

You will always choose the annuity.

 

Comparing the future values of the two options will lead to the same decision as

 

comparing present values.

 


 

Marge and Homer Simpson bought a home, in 2006 for $325,000. They put down 20%. The

 

mortgage was for 30 years with an interest rate of 5.5%. Next month is the 5 year anniversary of

 

owning the home and they already paid this month?s mortgage payment. Their house is now worth

 

$243,750. What is their monthly payment?

 


 

$1,845

 

$1,556

 

$1,476

 

$1,703

 


 

Continuing from the previous problem, what is the remaining balance of the home with 25 years left

 

to pay?

 


 

$250,956

 

$240,397

 

$233, 547

 

$260, 225

 

None of the above

 


 

Mary and Jane are domestic partners. They would like to save to adopt a baby. They estimate it will

 

cost $15,000 a year for 18 years. They have $35,000 saved today. They are conservative in risk and

 

traditionally have been able to get 5% net return on their money with inflation being 3%. What is the

 

future value of the cost of them having a child without paying for college?

 


 

$351,216

 

$337,754

 

$506,217

 

$271,196

 


 

 

Paper#9256112 | Written in 27-Jul-2016

Price : $16
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