Making deposits from your biweekly paycheck

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Reference no: EM131330033

1. Suppose that you wish to have $1037382 in an investment account after 28 years, by making deposits from your biweekly paycheck (26 times per year). If the annual interest rate on your investment account is 5.0% and your total salary for the year is $89289, what should your deposits be, as a percentage of your gross paycheck amount? Use the totaI salary per paycheck. It is not necessary to consider FICA or tax withholding amounts for this question.

2. The Williamsport Little League Commission has taken out a 9-year loan for $415901 to finance upgrades to its stadium. The loan carries an interest rate of 7.4%, compounded annually.The loan will be paid off in full at maturity. The Commission is setting aside funds each quarter in an account that earns an annual interest rate of 4.8%. Calculate the amount the Commission should deposit quarterly (4 times per year) in order to have enough to pay off the loan in full at the maturity date.

3. When Carl bought his car, he took out a 7-year loan auto loan for $23955. The loan has a 8.5% annual interest rate and has monthly payments. If Carl now has 1 year(s) of payments remaining, how much does he still owe on this loan?

Reference no: EM131330033

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