What annual compounded return must you earn

Reference no: EM133368529

QUESTION 1
The Mercedes Benz S580 sells for $137,000. Mercedes Benz offers a 3-year lease at a rate of 3% (APR) with monthly payments. The residual (buyout) on the lease is 52% of the price. You elect to make a down payment of $13,990. How much principal remains outstanding one month before the end of the lease term (after the monthly payment)? (Ignore taxes.)

QUESTION 2
"You have been making $2,200 per-year contributions to your company retirement plan for 20 years. It now has a balance of $254,000. If you want to withdraw $20,800 per year for 30 years, what annual compounded return must you earn? Express your answer in percentage form rounded to two decimals."

Reference no: EM133368529

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