Math Lab 4: Name: Due December 8 in ILC Suppose you want to retire in 20 years a
ID: 2798249 • Letter: M
Question
Math Lab 4: Name: Due December 8 in ILC Suppose you want to retire in 20 years and need to have $30,000 for a down-payment on your retirement home. If you wish to make a quarterly payment into an account paying 8% compounded quarterly, how much should you deposit each quarter? 9. 10. The Turners have purchased a house for $150,000. They made an initial down payment of $30,000 and secured a mortgage with interest charged at the rate of 9 % per year on unpaid balance. (Interest computations are made at the end of each month.) Assume the loan is amortized over 30 years. a. What monthly payments will the Turners be required to make? b. What will their total interest payment be? c. What will be their equity (disregard depreciation) after 10 years?Explanation / Answer
Q 9. Future value of quaterly payment should be equal to $ 30K. We can calculate quaterly payment required using the equation below. Future value of annuity= quaterly deposit *(((1+quaterly rate)^no. of quarters-1)/quaterly rate) 30000=Quaterly deposit*((1+8%/4)^(4*20)-1)/(8%/4) On soilving the equation, we get the following Quaterly Deposit=$154.82 Please raise another question for Q 10 as per chegg policy.