Asked by Marish Quilicot on Jun 17, 2024
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Rajesh invested $30,000 into an account that has a monthly rate of return of 0.79%.He has made arrangements to withdraw $250 automatically every month to pay off his 10-year student loan.Will Rajesh have enough money in the account to cover all of the required loan payments? If so,how long can he continue to withdraw $250 each month to put toward a car payment? (Round to the nearest year. )
Monthly Rate
The interest rate or other fees assessed on a monthly basis, often used in loans and financial agreements.
Student Loan
A loan offered to students which is used to pay off educational expenses and is repayable after graduation, typically with interest.
Withdraw
To remove funds from a bank account or investment, or to retract from participation in an activity or agreement.
- Apply mathematical calculations to estimate the future value of investments.
- Analyze the sufficiency of ongoing investments to cover long-term financial obligations.
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Learning Objectives
- Apply mathematical calculations to estimate the future value of investments.
- Analyze the sufficiency of ongoing investments to cover long-term financial obligations.
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