Question

-11 points TanFin 12 5.3.036. My Notes Ask Your Teacher Yumi's grandparents presented her with a gift of $20,000 when she was 9 years old to be used for her college education. Over the next years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 4.5/year compounded monthly. Upon turning 17. Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is expected to an interest at the rate of 5/year, compounded annually, what will be the size of each Installment? (Assume no interest is accrued from the point she turns 12 until she makes the first withdrawal. Round your answer to the nearest cont.) 8. -/1 points TanFin12 5.3.033. My Notes Ask Your Teacher Andrea, a self-employed individual, wishes to accumulate a retirement fund of $600.000. How much should she deposit each month into her retirement account, which pays interest at rate of 4.5 /year compounded monthly to reach her goal upon retirement 35 years from now (Round your answer to the nearest cent.) 9. 0 -11 points TanFin 125.3.054. My Notes Ask Your Teacher George secured an adjustable rate morto ARN) loan to help rnance the purchase of at the rate of year compounded monthly currently, the interest rate for his AM be the new monthly payment (Round your answer to the nearest cent) home 5 years . The amount of the loan was $200,000 for a term of 30 years, with interes /year compounded monthly, and George's monthly payments are due to be reset. What will

Answer 1

Q7	FV of deposit at age 17	$28,647.29
	Annual withdrawal	$8,078.88
Q8	Monthlydeposit	$589.54
Q9	Principal paid in 5 years	-8239.7275
	Balance loan	191760.27
	New monthly payment	$860.27

Workings

AutoSave on 2 Book1 - Excel Sign in - 0 H D Draw Page Layout File Home Insert Formulas Data Review View Help - 11 Calibri BIU AA === A Tell me what you want to do 2 PZ B 2 Conditional Format as Cell Formatting Table Styles Styles insert Delete - Format Share Comme E 47 0 - Sort & Find & Filter - Select Paste = 3 $ -% 68 Clipboard Font Number Cells Editing Alignment =PMT(5%,4,-C2) - X fix A F 2 07 FV of deposit at age 17 Annual withdrawal =FV(4.5%/12,8*12,,-20000) =PMT(5%,4,-C2) 5 Q8 Monthlydeposit =PMT(4.5%/12,35*12,,-600000) Principal paid in 5 years =CUMPRINC(9%/12,30 12,200000.1,5 12,0) Balance loan =200000+C7 New monthly payment =PMT(2.5%/12,25*12,-C8)