plz solve it within 30-40 mins I'll upvote your answer 22. Mr. and Mrs. Ramirez have 4 children and have decided that they need a bigger house. They intend to upgrade their current residence and will spend$289, 000. If their loan has an annual interest rate of 6% for 25 years, what will their payment and the total cost of their loan be?TERMSIN YEARS7%TERMSIN YEARS6%7%8%9%1011,1011,2311.3511.4811.6211,7511.8812.0112,1412.2712.4012.6710158.448.578.718.858.999.139.289.429.569.719.8510.1515207.167.317.467.607.767.918.068.218.378.538.689.0020256.446.606.756.917.077.237.397.567.727.898.068.4025306.006.166.326.496.656.837.0007.177.347.527.698.0530$1,907.40; $572, 220O $1, 734.22; $520, 200$1, 861.16; $46, 528$1, 861.16; $558, 348

Interest Rate- The interest rate is the sum a lender charges a borrower and is a proportion of the…

Answered: 22. Mr. and Mrs. Ramirez have 4…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Harvey and Esmeralda's combined gross income is $75,000, and their monthly consumer debt is $558. They wish to purchase a new home valued at $285,000 but need to know if they qualify for a mortgage of $245,000 amortized over 20 years. The mortgage interest rate on a 5-year mortgage term is 1.89%. Property taxes are $1,800/year and the heating cost for the home is $1,200/year. What is their monthly mortgage payment? Select one: a. $1,012.43 b. $1,225.84 c. $1,142.60 d. $1,124.60 e. None of the above
John, a 25-year-old teacher, wants to start saving for his retirement. John wants a comfortableretirement, so he needs to have one million dollars in his saving account, which pays 2.4% annualinterest rate, when he reaches 67 years of age.a. How much should John deposit into his saving account monthly now? Round your answer to thenearest cent.b. If John wants the one million dollars in his saving account to last him 20 years into hisretirement, how much could he withdraw from the saving account monthly? You can assume thesaving account will pay the same 2.4% annual interest rate. Round your answer to the nearestcent.c. If John increases his monthly deposit in part (a) by $200, how much will be in his saving accountif he wants to retire at 60 years of age? Round your answer to the nearest cent.
11. If Jennifer contributes $500 every quarter into her superannuation fund for the next 45 years, how much will she accumulate assuming she can earn 8% p.a. and the first contribution is made immediately? Select one: a. $652,810.16 b. $875,181.20 c. $858,020.78 d. $90,000.00
Carolyn is helping to save for her granddaughter’s college fund. It will probably take 18 years before she is in college, and Carolyn estimates she will need to save $150,000. If she earns 6% per annum, the amount that should be deposited every year for the next 18 years beginning today, is $4,853. $4,579. $4,443. $8,333.
1. Millet wants to provide a P200,000 graduation gift for her daughter Mae who is now 16 years old. She would like the fund to be available by the time her daughter is 20. She decides on an investment that pays 10% compounded quarterly. How large must the deposit be? 6. Ms. Cruz can buy a piece of property for P6.500.000 cash or P4,000.000 down payment and P4,200,000 in five (5) years. If she has money earning 8%, converted quarterly, which is a better purchased plan and by how much?
88) Kathy is buying her first home. She is financing a total of $185,000 at an APR of 5% for 25 years. How much are her monthly payments? A) $952.33 B) $1,081.49 C) $1,441.23 D) $1,664.85 89) Juanita has determined that the PITI on the house she would like to purchase will be $1,260 per month. What is the minimum gross salary she will need to qualify for a mortgage from a reputable lender? A) $6,300 per month B) $4,500 per month C) $3,500 per month D) $5,040 per month 90) Tran currently makes $4,500 per month in gross income. He has a student loan payment of $250 per month and a car loan of $450 per month. His credit card payments average $300 per month. What is the largest PITI he could qualify for with a reputable lender? A) $620 B) $900 C) $1,260 D) $1,620 91) Bob and Mary Kay have gross household income of $7,000 per month. They both have great credit scores and the home they are interested in buying appraised higher than the selling price.…
Hi, on the topic of time value of money, I am having trouble with the steps to answer the following questions: 1. Mia plans to save $9,700 a year for the next 27 years to help her in retirement starting at the end of this year. If her super fund earns 8.6% p.a, how much money would she be able to spend per year over the following 35 years?" 2. Jane intends to retire in 30 years' time. What annual contribution should she make to her superannuation fund, starting at the end of the current year, if she expects to draw a pension of $120,000 per year for 20 years following her retirement? Her fund earns a return of 5% p.a. with annual compounding. Thank you! :)

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