Make house down payment at a mutually agreed

Assignment Help Financial Management

Reference no: EM132038866

1. You borrow $20,000 from your parents to make a house down payment at a mutually agreedupon annual interest rate of 5%, and a payback period of 5 years (direct reduction loan). What will be your annual, or monthly, payment amounts?

2. On a child’s 10 birthday, parents decide that they can afford to save $550 per year toward the future purchase an automobile on the child’s 16th birthday (n=6 years). The interest rate is 4%. Which car will they be able to purchase? a. Used Sports car for $10,500 b. Used Small SUV for $7500 c. Used Econobox for $3500

Reference no: EM132038866

Questions Cloud

How do you solve for ordinary annuity in months : Mr. Gordon plans to invest $600 at the end of each month in an account that pays 6%, compounded monthly. After how many months will the account be worth $70,000

How do you solve for annuity due : How much will have to be invested at the beginning of each year at 10%, compounded annually, to pay off a debt of $70,000 in 10 years?

Total number of monthly payments to pay off the loan : The monthly payment is $385. What is the total number of monthly payments to pay off the loan?

Suppose a recent college graduate first job : Suppose a recent college graduate's first job allows her to deposit $200 at the end of each month in a savings plan that earns 6%, compounded monthly.

Make house down payment at a mutually agreed : You borrow $20,000 from your parents to make a house down payment at a mutually agreed upon annual interest rate of 5%,

What is the probability that they are all defective : If a customer selects 3 cartridges at random from the shelf, what is the probability that they are all defective? (Round your answer to five decimal places.)

Interview schedule must conform to the conditions : Each applicant is to be interviewed exactly once, and the interview schedule must conform to the following conditions:

Internally generated equity to issuing new shares of common : Why are firms likely to prefer internally generated equity to issuing new shares of common?

How much will be available in the account on my daughter : On my daughter's date of birth, I start depositing $350 at the end of every month into a bank account. The account earns 4.5% interest compounded monthly.

User Account

All Pages