SHOW YOUR WORK PLEASE, I need to know how to do the formulas. Please type the answers, I have a hard time reading some peoples handwriting.
For all problems, “1 year” = 12 months = 52 weeks ≈ 360 days
1. Mark makes his first deposit of $1500 into a Roth IRA earning 6.5% interest compounded annually at age 36. He continues to make an annual deposit of $1500 until he is 60 (25 deposits in all). With no additional deposits after age 60, the money in Mark’s Roth IRA continues to earn 6.5% interest compounded annually until he retires at age 66. How much money is in Mark’s Roth IRA when he retires?
2. The Smith’s family takes out a 30-year mortgage at 4.25% compounded monthly after putting 20% down to buy a home valued at $220,000.
Find: a. the monthly payment
b. the unpaid balance after 10 years
c. the equity the family has built up in its house after 20 years of monthly payments, if the house’s net market value 20 years from now is $300,000