D Question 19 5 pts Consider a 30-year, $115,000 fixed-rate mortgage with a nomi

Question

D Question 19 5 pts Consider a 30-year, $115,000 fixed-rate mortgage with a nominal annual rate of 4.55 percent. All payments are made at the end of each month. What is the remaining balance on the mortgage Your answer should be between 98,478 and 112,670, rounded to 2 decimal places, with no special characters D Question 20 5 pts Ashley turned 30 today, and she is planning to save $3.000 per year for retirement, with the frst deposit to be made one year from today. She will invest in a mutual fund, which she expects to provide a return of 9.70% per year throughout her lifetime. She plans to retire 35 years from today, when she turns 65, and she expects to live for 30 years after retirement, to age 95. Under these assumptions, how much can she soend in cach year after she retires? Her first withdrawal will be made at the end of her hrst retirèment year, and she plans on leaving no moncy to her heirs

Explanation / Answer

As per Chegg policy only 1 question per submission can be solved. Here comes the solution for first question PV of annuity for making pthly payment P = PMT x (((1-(1 + r) ^- n)) / i) Where: P = the present value of an annuity stream 115000 PMT = the dollar amount of each annuity payment To be calculated r = the effective interest rate (also known as the discount rate) i=nominal Interest rate 4.55% n = the number of periods in which payments will be made 30 Effective rate= (1+4.55%/12)^12)-1) 4.65% 115000 = PMT x (((1-(1 + r) ^- n)) / i) 115000 = PMT x (((1-(1 + 4.65%) ^- 30)) / 4.55%) 115000 = PMT *16.35075 Annual payment= 115000/16.35075 Annual payment=             7,030 Let's calculate the loan outstanding at the end of 5 years i.e PV of next 25 years payment Loan outstanding at the end of 5 years =7030* (((1-(1 + 4.65%) ^- 25)) / 4.55%) Loan outstanding at the end of 5 years        104,861

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