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The value of her investment will be $89 466.86.
Year
Value of the Investment
($)
0
20 000.00
1
23 100.00
2
26 370.50
M
15
89 466.86
The total amount of interest earned will be $39 466.86.
Sylvie and Roland want to purchase a new house and can afford to make monthly payments of $1000.00. They go to the bank and obtain a mortgage for $195 000.00 compounded semi-annually and amortized over 25 years.
What is the interest rate (to 2 decimal places) of the mortgage? Show your work.
Sylvie and Roland wonder if it would be wise to find a less expensive house to reduce the amortization period to 20 years. Assuming that only the amortization period changes, what would be the maximum mortgage they could afford? Show your work.
Prepare a Flexible Budget Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the Tampa Bay area.
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