Mark wants to start an IRA that will have $750,000 in it when he retires in 29 y

Question

Mark wants to start an IRA that will have $750,000 in it when he retires in 29 years. How much should he invest quarterly in his IRA to do this if the interest is 4% compounded quarterly? For the given (corporate) bond, whose interest rate is provided, find the semiannual interest payment and the total interest earned over the life of the bond. $5000 Max-Mart Stores 7-year bond at 3.75% Find the monthly payment and estimate the remaining balance (to the nearest dollar). Assume interest is on the unpaid balance. 3-year car loan for $9800 at 3.05%; remaining balance after 2years (i.e. after making 24 payments). Find the face value (to the nearest thousand dollars) of the 15-year zero-coupon bond at 5.2% (compounded semiannually) with a price of $20,835. Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. $50,000; money earns 4% annual interest that is compounded semi annually for 17 years. Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows 121,000 at 3.0% for 30 years. What is their monthly payment? Round the answer to the nearest cent. John Snow is planning to save $500 every month in a retirement annuity that is paying 6% till his retirement in 25 years. If the annuity keeps paying the same interest during his retirement, how much will he able to withdraw (approximately) each month during his 25 year retirement? John Snow is planning to save $500 every month in a retirement annuity that is paying 6% till his retirement in 25 years. If the annuity keeps paying the same interest during his retirement, how much will he able to withdraw (approximately) each month during his 25 year retirement? The store manager knew that the cost function was C(x)=200x+1200, where x is the number of items sold per day; and that each item sold for $250. What was the breakeven point for his store?

Explanation / Answer

Interest Rate = 3.75% = .0375

Face value Amount = 5000*(1+.0375)^7 = $6469.74

So Interest = Amount - Principal = 6469.74 - 5000 = $1469.74 =

Semiannual interest payment = Face value * annual interest rate * 6/12 = 6469.74*0.0375*0.5 = $121.31

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