3. The Stein family wants to buy a small vacation house in a year and a half. They expect it to cost RM75,000 at that time. They have the following sources of money They currently have RM10,000 in a bank account that pays 6% compounded monthly. Uncle Murray has promised to give them RM1,000 a month for 18 months starting today and they save it in a bank account that pays 6% compounded monthly. At the time of purchase, they'll take out a mortgage. They anticipate being able to make payments of about RM300 a month on a 15-year, 12% loan. In addition, they plan to make quarterly deposits to an investment account to save up any shortfall in the amount required. How much must those additions be if the investment account pays 8% compounded quarterly?
3. The Stein family wants to buy a small vacation house in a year and a half. They expect it to cost RM75,000 at that time. They have the following sources of money They currently have RM10,000 in a bank account that pays 6% compounded monthly. Uncle Murray has promised to give them RM1,000 a month for 18 months starting today and they save it in a bank account that pays 6% compounded monthly. At the time of purchase, they'll take out a mortgage. They anticipate being able to make payments of about RM300 a month on a 15-year, 12% loan. In addition, they plan to make quarterly deposits to an investment account to save up any shortfall in the amount required. How much must those additions be if the investment account pays 8% compounded quarterly?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:3. The Stein family wants to buy a small vacation house in a year and a half. They expect
it to cost RM75,000 at that time. They have the following sources of money
They currently have RM10,000 in a bank account that pays 6% compounded
monthly.
Uncle Murray has promised to give them RM1,000 a month for 18 months starting
today and they save it in a bank account that pays 6% compounded monthly.
At the time of purchase, they'll take out a mortgage. They anticipate being able to
make payments of about RM300 a month on a 15-year, 12% loan.
In addition, they plan to make quarterly deposits to an investment account to save up any
shortfall in the amount required. How much must those additions be if the investment
account pays 8% compounded quarterly?
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