How much money will the lawyer need when she retires

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Reference no: EM131831065

1. A young married couple has looked at their monthly budget and decided they can afford $1,043.00 per month on a mortgage. (assume no escrow). Currently, interest rates are 3.84% APR with monthly compounding for a 30 year mortgage with monthly payments.

Assume they have the funds for a 20% down payment. That is, they pay for 20% of a home’s price in cash, and use the mortgage for the other remaining 80%.

Assume they have the funds for a 20% down payment. That is, they pay for 20% of a home’s price in cash, and use the mortgage for the other remaining 80%. What is the house price?

2. A jet-setting lawyer plans on living large on the French Rivera in retirement. The lawyer anticipates living for 20.00 more years after retirement and will need $287,800.00 per year to support her life in the South of France. While retired, she will keep her money in a tax-free account that pays 2.00% per year. How much money will the lawyer need when she retires? (assume beginning of the year withdrawals)

Reference no: EM131831065

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