These are the questions - thank you so much guys...
3. A Picture Is Worth a Thousand Words
Perhaps a picture could help save someone a thousand dollars. Imagine that you are a financial consultant and you want to provide your client with graphical representations of the effects of varying different options on a mortgage. Choose a current mortgage rate to work with and provide graphs showing the effects of changing payment periods and lengths of amortization. You may decide to look at several aspects to compare the mortgages—amounts of interest paid, length of time to pay off the mortgage, principal owing at various time intervals, and so on.
4. Retirement Plans
Sara and Ritu have just finished school and have started their first full-time jobs. Sara has decided that she is going to start putting $100/month away in a Retirement Plan. Ritu thinks that Sara is crazy because Sara is only 22 and should enjoy her money now and worry about saving for retirement later. Ritu is not going to worry about saving money until she is 45.
(a) Suppose both young women retire at age 60. How much money will Ritu have to contribute monthly, to retire with the same savings as Sara? Assume that they can invest their money at 9% compound monthly.
(b) Write a convincing argument for one of the young women’s positions.