1) You have a long-term goal of paying off your school loans in six years. You w

Question

1) You have a long-term goal of paying off your school loans in six years. You will graduate with a loan debt of $21900 and an interest rate of 5%. How much will you need to pay each moth to have the debt paid off in six years?

a)$352.70

b)$365

c)$358.70

d)$ 335.06

2)With a reverse mortgage, upon the death of the last surviving homeowner, if there is negative equity in the home, the survivors will owe money to the bank.

a) True

b) False

3) Anna recently opened a savings account and made three deposits in the amounts of $100,000, $65,000, and $200,000. If the Great Depression was to occur again and the bank closed, how much money would Anna be insured for?

Explanation / Answer

question 1) We will use excel formula PMT to find out monthly payment here

monthly payment PMT= PMT (rate,nper,pv)

here rate = 5%/12 (since payment is monthly)

nper = total period of payment = 6*12 = 72 months (since payment in months)

pv= -21900 (we have put - sign because we have to pay the debt)

hence monthly payment = PMT(5%/12,72,-21900) = $352.70

Thanks

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.