Solution-By how much would he reduce the amount he owes

By how much would he reduce the amount he owes

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Question 1 - Horseman Pileggi borrowed $25,000 at a rate of 5% and must repay it in four equal installments at the end of each of the next 4 years. By how much would he reduce the amount he owes in the first year?

a. $471.57

b. $7,050.30

c. $1,250.00

d. $5,800.30

e. None of these are correct

Question 2 - How much money will Slats Slattery accumulate at the end of twenty years if he presently has $100,000 and plans to invest $50,000 per year for the next ten years? He can earn 4.25% on his investments.

a. $690,923.30

b. $920,813.94

c. $1,150,704.57

d. $758,932.59

e. None of these are correct

Reference no: EM133069716

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By how much would he reduce the amount he owes

Reference no: EM133069716

Reference no: EM133069716

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