Please answer question 1 . Thanks. IENG377 Exam 1 1. (14 points) Your starting s

Question

Please answer question 1 . Thanks.

IENG377 Exam 1 1. (14 points) Your starting salary is $55,000 a year. payment, food, rent and other expenses, you determine you month you put a have after 10 years? After taxes, student loan payment, car 1000 every month. Each in an investment that much will you : ou 56 5 X (14 points) You take out a loan of $150,000 from the bank for a house. The bank gives you a 6% nominal rate compounded monthly. You will make 360 monthly payments (over the next 30 years). What is the monthly loan payment? 2" N-30K : 753.75x , For r new product, r, you estimate fixed costs 3. (14 arlable cost per unit of product includes an $85material cost per unit and aS10 You have completed a market survey which indicates that the price you can your product is How many units do you need to sell to break even? ect eve n

Explanation / Answer

The monthly amount that is invested = $2,000.

Now, the number of months till the end of 10 years = 120

Future value = 2000(1.005^119) + 2000(1.005^119) + ... + 2000(1.005^1) + 2000(1.005^0)

or, Future value = 2000 [ (1.005^119) +(1.005^119) + ... + (1.005^1) + (1.005^0) ]

Solving using sum of GP series formula we get

or, Future value = 327,758.69

So, after 10 years he willl have $327,758.69

Please like my answer.

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