You want to build a $40,000 shed on your property in 3 years. You find that the bank can offer several options with a rate of 6% compounded quarterly. Your options are the following: Option 1: You make a one time deposit money today as one lump sum into a savings account to gain $40,000.  How much would you need to deposit?  How much interest do you earn? Option 2: You make a deposit at the end of each quarterly into a savings account to gain $40,000. How much will the deposit be for each quarter? How much interest do you earn? Option 3: You decide that you want to build the shed today and instead of saving the money up, you take out a loan in the amount of the $35,000 which is how much it will cost to make the shed today.  How much will the quarterly payment be to pay-off the loan in 3 years?  How much interest do you need to pay?

Q: You are planning to deposit $4,200 into a financial investment that will pay annual interest rate of…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Explain which is the better option.

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Q: a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the…

A: Amortization Schedule: It is a table containing details about each periodic payment. It includes…

Q: What is the payoff amount for the loan?

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A: Using the Future value and NPER function in excel

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Q: compounded

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Q: the amount of the down payment?

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