Please answer all or none! Thank You. 2 a. You wish to have $1,500,000 by the ag

Question

Please answer all or none! Thank You.

2

a. You wish to have $1,500,000 by the age of 60 (30 years from now). If you can earn 8% interest on your investments, how much do you need to save per month, in order to achieve your goal?

b. You decide you can afford house payments (principle and interest) of $900 per month. Given an annual rate of 5.5% for a 30 year loan, how much will you be able to borrow?

c. You have $100,000 invested today. If you add $300 per month to your investments, after 35 years, assuming 8% annual interest, how much do you have total?

d. You believe you could live on $6,000 per month today. What is the equivalent amount of money to the $6,000 (in terms of cost of living), 30 years from today, if it is adjusted for 2.5% annual inflation?

Explanation / Answer

1. =PMT(8%/12,30*12,0,1500000)=1006.47

2. =PV(5.5%/12,30*12,900)=158509.59

3. =FV(8%/12,35*12,300,100000)=2317419.74

4. =FV(2.5%,30,0,6000)=12585.41

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