Acadian Life Care (ALC) will have to make major renovations to a seniors complex 20 years from now. At that time, they
Posted: Sat Nov 27, 2021 5:13 pm
Acadian Life Care (ALC) will have to make major renovations to a
seniors complex 20 years from now. At that time, they expect
the renovations to cost $52,000,000. They intend to start
planning for this expense now by saving $70,000 at the end of each
quarter. They have already set aside $1,200,000 for these
renovations. Theyexpect to earn 7% APR compounded quarterly.
In 20 years,they will finance any shortfall by taking out a
loan with monthly payments over 15 years at 3.6% compounded
monthly. How much will these monthly payments be?
seniors complex 20 years from now. At that time, they expect
the renovations to cost $52,000,000. They intend to start
planning for this expense now by saving $70,000 at the end of each
quarter. They have already set aside $1,200,000 for these
renovations. Theyexpect to earn 7% APR compounded quarterly.
In 20 years,they will finance any shortfall by taking out a
loan with monthly payments over 15 years at 3.6% compounded
monthly. How much will these monthly payments be?