Find the amount needed to deposit into account

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1. Find the amount needed to deposit into an account today that will yield pension payments of $50,000 at the end of each of the next 30 years if the account earns interest at a rate of 3.1%/yr compounded annually. (Round your answer to the nearest cent.)

2. If the initial contract rate on an ARM is 6%, the second year contract rate is 9%, the margin is 2%, the life of the loan cap is 5%, and the annual cap is 3%, what is the contract rate for year three if the index is 9%?

3. Andrea, a self-employed individual, wishes to accumulate a retirement fund of $700,000. How much should she deposit each month into her retirement account, which pays interest at a rate of 6.5%/year compounded monthly, to reach her goal upon retirement 25 years from now? (Round your answer to the nearest cent.)

Reference no: EM131926947

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