Decide to deposit equal annual contribution to college fund

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1) A child is born this year. On it's first birthday [after 1 year], the parents decide to deposit an equal annual contribution to the college fund that will earn 8%, compounded annually. How much should they deposit at the end of each year so that it will grow to $50,000 on the child's 18th birthday?

2) Calculate the monthly payment on a $300,000 loan with monthly payments, at 4% interest with 30 years amortization.

3) What is the mortgage loan balance of the loan above at the end of year 5.

4) A borrowers take a $300,000 loan with fixed rate of 4% amortized with monthly payments over 30 years. There are prepaid finance charges of 1 point on the loan amount plus $1500. Calculate the APR. (Format answer as a percentage of 2 decimal places)

Reference no: EM13872729

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