Question 8 0.6/3 pts 3 98 Details You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. a) How much do you need in your account at the beginning? $ b) How much total money will you pull out of the account? $ c) How much of that money is interest? $ Question Help: Video 1 Video 2 Post to forum Submit Question Question 9 0.6/3 pts 3 98 Details You can afford a $800 per month mortgage payment. You've found a 30 year loan at 7% interest. a) How big of a loan can you afford? $ b) How much total money will you pay the loan company? $ c) How much of that money is interest? $
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05), and n is the number of years (30). Plugging in the values, we get: PV = 20000 * (1 - (1 + 0.05)^(-30)) / 0.05 Calculating this, we find that you need $383,043.14 in your account at the beginning. Show more…
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