Determine the payment to amortize debt

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Reference no: EM131985294

1. You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $3,000 at the end of the first year, and you anticipate that your annual savings will increase by 10% annually thereafter. Your expected annual return is 11%. How much will you have for a down payment at the end of Year 3? Round your answer to two decimal places.

2. Determine the payment to amortize the debt. (Round your answer to the nearest cent.) Monthly payments on $120,000 at 4% for 25 years.

3. Calculate the present value of the annuity. (Round your answer to the nearest cent.) $1200 monthly at 6.5% for 30 years.

Reference no: EM131985294

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