Can someone please help with these two questions? Most helpful answer will be aw
ID: 2630317 • Letter: C
Question
Can someone please help with these two questions? Most helpful answer will be awarded the points. Thanks!
You are planning to make monthly deposits of $390 to a retirement account that pays 8 percent interest compounded monthly If your first deposit will be made one month from now. how large will your retirement account be in 25 years'? (Do not round Intermediate calculation* and round your final answer to 2 decimal places, (e.g.. 32.16)) Dinero Bank offers you a $53,000. four-year term loan an annual interest rate of 7 percent What will your annual loan payment be? (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g.. 32.16))Explanation / Answer
1)
Annuity Amount (PMT) = 390
Monthly Rate (rate) = 8%/12
No of deposit (nper) = 25*12 = 300
Present Value =0
Future Value = fv(rate,nper,pmt,pv)
Future Value = fv(8%/12,300,390,0)
Future Value = 370,900.29
2)
Annual Rate (rate) = 7%
No of Year (nper) = 4
Present Value = 53000
Future Value = 0
Annual Loan Payment = pmt(rate,nper,pv,fv)
Annual Loan Payment = pmt(7%,4,-53000,0)
Annual Loan Payment = $ 15647.09