Taken out amortized loan, Assume that you have taken out an

Taken out amortized loan

Assignment Help Financial Management

Reference no: EM131974227

1. You plan to withdraw $2,000 a month from your retirement account for 20 years when the time comes. The money resides in an account that pays 4.5% interest compounded monthly. How much money should be in the account in order to be able to do this? (Hint: This is an annuity that decays).

2. You inherit $125,000. It is placed in an account earning 6.5% interest compounded monthly. How much can you withdraw every month for 8 years? How much do you actually receive in the 8 years?

3. Assume that you have taken out an amortized loan for $24,500. The yearly interest rate is 22% and you will pay off the loan in 7 years. What is the monthly payment?

Reference no: EM131974227

Questions Cloud

What is the total amount spent on paying off this card : What percent of the total balance owed does this minimum payment represent? What is the total amount spent on paying off this card?

Fixing an exchange rate today for future transaction : A(n) ______ allows traders to hedge exchange rate risks in the Forex market, by fixing an exchange rate today for a future transaction.

What is the current share price : If the required return is 12 percent, and the company just paid a dividend of $1.60, what is the current share price?

Faced by countries with floating exchange rates : has been shown to be the major potential problem faced by countries with floating exchange rates.

Taken out amortized loan : Assume that you have taken out an amortized loan for $24,500. The yearly interest rate is 22% and you will pay off the loan in 7 years. What is monthly payment?

Construct the amortization schedule for the loan : The annual interest rate is 15%, which you will pay off in 3 equal payments of $17,085.06. Construct the amortization schedule for the loan.

Forward exchange rate and the spot exchange rate : Interest rate differential between two countries is equal to the percentage difference between the forward exchange rate and the spot exchange rate is called

The lessee assumes some of the risks of ownership : The lessee assumes some of the risks of ownership and enjoys some of the benefits.

True about income statements : Which of the following is NOT true about Income Statements?

User Account

All Pages