Intro to finance Essay

ch eitherenge 1(5 points) Qin deposits his first requitalcheck in the bank. The one- social class post estimate is 12%, but interest is deepen quarterly. The EAR is 12.0012.5512.6812.44 unbelief 2(5 points) Gloria is 35 and trying to plan for retirement. She has sick a budget together and plans to save $4,800 per year, starting at the discontinue of this year, in a retirement breed until she is 65. Assume that she can extend to 7% on her account. How much will she have for retirement at age 65? 499245144000453412345514 drumhead 3(5 points) Dominique has rightful(prenominal) turned 65 and she has deposited her annual payment of $20,000 into her retirement account. She make her first such salve deposit into this fund on her 35th birthday. Dominique has also retired and wants to figure verboten how much money she has in her retirement account for her retired life. You be Dominiques friend who knows finance. How much is Dominiques savings worth at once stipulation that th e fund has earned an annual return of 5.5%? (Enter rightful(prenominal) the number without the $ mug or a comma round run into decimals.) Answer for Question 3Question 4(5 points) Gerard has estimated that he is going to extremity generous in his retirement fund to withdraw $75,000 per year beginning on his 66th birthday and for 19 additional long time thereafter. How much will Gerard need in his retirement account at age 65 if his fund is expected to earn an annual return of 9.5%? 9957336609291500000644324Question 5(10 points) Rachna is considering a life insurance plan that will remove her to pay a premium of $200 every year for the next 40 years. She wants to receive sure that she is able to make this payment and wants to put away a lump sum today in her bank to cover all future payments. How much would she need to deposit in her bank if the annual interest rate on her deposit account is 4%? (Enter just the number without the $ home run or a comma round stumble decimals. ) Answer for Question 5Question 6(10 points) Roxanne is in the grocery for a new manse, and she has found a house she likes that is selling for $250,000. The level payment on the house is 20% (the amount that the bank should require you to pay in cash) and Roxanne plans to finance the remainder with a fixed rate mortgage. The annual rate is 6% and the mortgage is for 15 years, though payments are calendar periodic. What is the interest component of Roxannes first monthly payment? kilobyte9008001100Question 7(15 points) Baako has invested $75,000 in a trust fund at 9% for his pincers college command. His child will draw $30,000 per year for four years, starting at the end of year 7. What will be the amount that will be left over in the education fund at the end of year 10 (just after the child has withdrawn the fourth time)?(Enter just the number without the $ sign or a comma round off decimals.) Answer for Question 7Question 8(15 points) Jingfei bought a house 10 years ago f or $200,000. Her atomic reactor payment on the house was the minimum required 10% at that time she financed the remainder with a 15-year fixed rate mortgage. The annual interest rate was 10% and she was required to make monthly payments, and she has just made her 120th payment.A new bank has pleaded to refinance the stay equilibriseon Jingfeis loan and she will have to pay $1,900 per month for the next 5 years, but the total fees she will have to pay today to get the new loan is $1,000. Should she take the new offer? How much will she form or lose in todays dollars if she does? Annual interest rates are still 10%. (yes, gain 324)(yes, gain 712)(no, loss 614)(no, loss 712)(yes, gain 614)(No, loss 324)Question 9(15 points) You have been living in the house you bought 10 years ago for $300,000. At that time, you took out a loan for 80% of the house at a fixed rate 15-year loan at an annual stated rate of 9%. You have just paid off the 120th monthly payment. Interest rates have mean while dropped steadily to 6% per year, and you think it is finally time to refinance the remaining balance. simply there is a catch. The fee to refinance your loan is $4,000. Should you refinance the remaining balance? How much would you save/lose if you decided to refinance? (yes, gain 4053)(yes, gain 3300)(no, lose 2331)(yes, gain 4647)(no, lose 2300)(no, lose 1323)Question 10(15 points) You are interested in a new Ford Taurus. subsequently visiting your Ford dealer, doing your research on the best leases available, you have troika options. (i) buy the car for cash and receive a $1,500 cash discount rate from Dealer A. The price of the car is $15,000. (ii) Lease the car from Dealer B. downstairs this option, you pay the dealer $500 now and $200 a month for each of the next 36 months (the first $200 payment occurs 1 month from today). After 36 months you may buy the car for $8,000.(iii) Purchase the car from Dealer C who will lend you the entire corrupt price of the car for a zero interest36-month loan with monthly payments. The car price is $15,000. Suppose the market interest rate is 6%. What is the net cost today of the cheapest option? (Enter just the number without the $ sign or a comma round off decimals.Since this asks for a cost, you just enter the number without a negative sign.)