Total payment after three years if compound interest is used

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1. A house is to be purchased for $180,000 with a 10 percent down payment. A conventional 30-year loan is used at 8 percent nominal annual rate compounded monthly. If the owner pays the mortgage for 10 year and then decides to sell the house, how much does he still owe the bank?

2. Julie is 30 today and plans to retire on her 65th Bday. She will deposit $18400 per year beginning today and ending at her 65th Bday. On her 71dt Bday she will withdraw $125000 each Bday. How much will she have at her 90th Bday if the account earns 5%?

3. Trevor needs a new computer for college. His uncle lends him $1,000 at 5 percent interest per year for 3 years. What is the total payment after 3 years if simple interest is used? What is the total payment after 3 years if compound interest is used?

Reference no: EM132047045

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