The Pirerras are planning to go to Europe 3 years from now and have agreed to set aside $140/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 9.5%/year compounded monthly, how much money will be in their travel fund at the end of the third year? (Round your answer to the nearest cent.)
The Johnsons have accumulated a nest egg of $16,000 that they intend to use as a down payment toward the purchase of a new house. Because their present gross income has placed them in a relatively high tax bracket, they have decided to invest a minimum of $1000/month in monthly payments (to take advantage of the tax deduction) toward the purchase of their house. However, because of other financial obligations, their monthly payments should not exceed $1300. If the Johnsons decide to secure a 15-year mortgage instead of a 30-year mortgage, what is the price range of houses they should consider when the local mortgage rate for this type of loan is 8%/year compounded monthly? (Round your answers to the nearest cent.)
least expensive $ 1
most expensive $ 2