Reference no: EM131594989
Show COMPLETE, THOROUGH, NEATLY-ORGANIZED & WELL- STRUCTURED ALGEBRAIC WORK for the following problems.
1. You are offered two jobs. One initially pays $25,000 / year, and your salary will grow annually at 10%. The other pays $22,000 / year, but your salary will grow at 12%. After 10 years, which job pays the higher salary? (Answer in three separate parts: a. Job 1, b. Job 2, c. Conclusion)
2. If you can save $1,500 annually, how much will you have accumulated after 4 years if the fund earns 7 percent a year?
3. You borrow $100,000 to buy a house; if the annual interest rate is 6% and the term of the loan is 20 years, what is the annual payment required to retire the mortgage loan?
4.You are buying a $35,000 car with 20% down, no sales tax, and by financing the balance for 5 years. If interest is 4.5% and monthly payment is $550, is this a good deal or bad deal? - i.e. Are you paying more than you owe? Prove your point by showing how you arrived at your conclusion.
5. If the stock you bought at the beginning of 2007 for $65 per share grew to $126 by the end of 2012, what is the annualized rate of return (geometric average) of your stock during this period?