Luis has $100,000 in his retirerment account at his present company. Because he
ID: 2794634 • Letter: L
Question
Luis has $100,000 in his retirerment account at his present company. Because he is assurning a position with another company, Luis is planning to roll over his assets to a new account. Luis also plans to put $3500/quarter nto he new account unu his reur ernen 20 yr rum nuw the account earns nterest a the rate o 6% year compounded quarterly, how much wl Luis have in his docuun a the ime u lis re remen ? Hint: Use the compound interest formula and the annuity formula. (Round your answer to the nearest cent.) Need Help? Read ItTalk to a Tutor 0.05 points TanAptMatho 4.2024.MI. Lupe made a down payment o $2200 toward the purchase o a new car. To pay the balance of the purchase price, she has secured a can from her bank at the rate o 12% year compounded monthly. Under the terms of her finance agreernent she is required to ake payrnents of $210/month for 48 no. What is the cash price of the car (Round your aniswer lo the nearest cent.) My Notes Need Help? Read It Master It Talk to a TutorExplanation / Answer
1) Here we will use annuity formula to find future value
FV(annuity) = A[(1+r)^n-1 / r ]
A= 3500$ , r=6%/4 = 1.5% , n = 20*4 = 80
FV(annuity) = 3500[(1+0.015)^80 - 1 /0.015]
=3500[3.29-1 / 0.015]
=3500[2.29/0.015]
=3500(152.71)
=5,34,487.984
Plus he will put his 1,00,000$ in this account
FV = PV(1+r)^n
=100000(1+0.015)^80
=100000(3.29)
=329066.28
Total amount at time of his retirement
=329066.28+534487.98
=$8,63,554.26
2)EMI = loan amony/PVIFA
210 = Loan amount /PVIFA(1%,48)
=210 = loan amount/37.9740
Loan amount = 210*37.9740
=$7974.53
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