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Worksheet 3.6.2 In Class Activity for Section 3.4 and Section 3.5
A4US

Group Activity

Use a spreadsheet to work on these problems. Write down the syntax to show your work. Answer each question in a complete sentence.

1.

Jackie is 34 years old. She would like to have one million dollars in her retirement account when she is 65 years old. How much would she need to deposit every month into an account with an APR of 7.25%, compounded monthly, to achieve her goal?

2.

If Jackie had started the account at age 21 (same APR), how much would she need to deposit every month to achieve her goal?

3.

If Jackie had started the account at age 21 (same APR) and deposited the amount calculated in Exercise 1 every month, what would the balance be when she retired at age 65?

4.

How much would Jackie need to deposit as a lump sum at age 21 with the same APR (without making another payment) to have a million dollars at age 65?

5.

Sam has a student loan of $30,000 at a fixed APR of 4.45%. If he wants to pay it off in 15 years, how much would he pay per month?

6.

How much would Sam pay in total?

7.

What percentage of the total was paid toward the loan amount of $30,000 and what percentage was paid toward interest?

8.

You want to buy a $350,000 home. You plan to put 10% down and take out a 30-year fixed mortgage on the rest. What will the loan amount be?

9.

What will your monthly payment be on your home mortgage if the interest rate is 4.5%?

10.

If you make all the payments on your home mortgage for 30 years, how much would you have paid for the house in total?

11.

In Exercise 9 above, what number would you get if you switch the 0 and the 315,000? Why are the answers so different? Explain the difference between these two scenarios.