Anna decides she wants to buy a farm and the bank agree to give her a loan provided she makes a 13.9% deposit of $40 000.
Calculate the value of the farm.
She currently has $15 000 saved up and decides to invest it in some high risk high growth shares forecasted to grow at 65% annually.
Calculate the forecasted number of years it will take for her to be able to afford the deposit.
1.5 years later, the shares outperform their forecasted growth rate and Anna is able to afford the deposit on the farm.
Calculate the percentage error between the forecasted annual growth rate and the actual annual growth rate of the shares.
Anna now takes out the loan from the bank.
Write down the amount of the loan.
The loan is for 25 years, compounded monthly, with equal monthly payments of $1200.
For this loan, find
After 15 years of paying off this loan, Anna decides to pay the remainder in one final payment.
Find the amount of Anna's final payment.
Find how much money Anna saved by making one final payment after 15 years.
Did this page help you?