What interest rate is the bank charging

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Reference no: EM13883446

1. a. You’ve just purchased your first home for $360,000! Your 30 year mortgage is $300,000. Your annual mortgage payments are $24,000. What interest rate is the bank charging you?

b.If instead you had the choice of making monthly payments of $2,000 for 30 years, what would the interest rate be?

2a. Assume that you are now 30 years old. You would like to retire at age 65 and have a retirement fund of $1,000,000. You already have $10,000 at age 30 in retirement savings (401K,IRA). You expect to earn 5% per year. The amount of money you must set aside each month to reach your retirement goal is:

b. At 65, if the appropriate discount rate is 7%, what amount can you get as an annuity for the next 25 years if you want to exhaust your savings by your death at 90?

Reference no: EM13883446

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