(2) You have $9, 500 you want to invest. Your bank has several investment accounts to choose from, all compounding monthly. Your goal is to have $11, 000 in 2 years. To the nearest hundredth of a percent, what is the minimum annual interest rate the account must have so you can reach your goal?

Q: If you put 1,000 in a savings account that yields an 7℅ annual rate of interest that is compounded…

A: Given: Present value = 1,000 Interest rate = 7% Periods = 25 weeks

Q: You're thinking about borrowing a $2000 personal loan. The interest rate on the loan is 10% with…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Suppose an investment will pay $19,000 in 16 years from now. If you can earn 10.15% interest…

A: Given information: Future value of investment is $19,000 Number of years is 16, Interest rate is…

Q: You invest $10,000 into an account that earns 4.5% simple interest each year. Give an equation…

A: Amount invested in the account is $10,000  Simple interest rate is 4.5% Time period is 30 years To…

Q: Suppose an investment will pay $25,000 in 39 years from now. If you can earn 11.05% interest…

A: Calculate the present value as follows: Present value = Future value / (1+rate)^years.

Q: year, to make a down payment of $75,752 on a vacation home If you can earn 3.03 percent on your…

A: The future value idea is a useful tool for investors to compare various investment prospects.…

Q: How much will you have after 5 years? How much will you have after 5 years if you make the deposits…

A: Each year Deposit RM 2500 Interest Rate 4%

Q: Xespresso is launching a new type of espresso coffee machine. Production requires an initial…

A: Here, Particulars Values Initial investment  £ 8,50,00,000.00 Salvage value  £ 1,00,00,000.00…

Q: You expect to have $1000 in one year.  A bank is offering loans at 6% interest per year, how much…

A: Given: Money invested today (C)= $1000 Interest rate (r) = 6% =0.06 Number of years (n) = 1

Q: if you place $1100 today into an account that pays simple interest and you have $6100 dollars in the…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: You are considering taking out a loan of $16,000.00 that will be paid back over 8 years with monthly…

A: Loans are paid by equal fixed periodic payments that carry the payment of interest and also payment…

Q: How much should you deposit at the end of each month into an investment account that pays 8.5%…

A: Retirement income is the money one receives after they stop working, either through savings,…

Q: ose an investment will pay $21,000 in 19 years from now. If you can earn 16.35% interest compounded…

A: The today value will be the present value of future value considering the discount rate and period…

Q: You expect to need $1500 in 3 years.  Your bank offers 4% compounded semi-annually.  How much money…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: If you deposit $300 at the end of every month in a savings account that pays a nominal APR of 5% per…

A: Compounding refers to phenomenon of calculating interest where interest is added to the principal…

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: Suppose an investment will pay $11,000 in 26 years from now. If you can earn 13.30% interest…

A: MONTHLY COMPOUNDING RATE (13.30%/12) 1.108333333% YEARS (26*12) 312 PMT  0 FUTURE VALUE…

Q: You would like to contribute to a savings account over the next three years in order to accumulate…

A: Compound = Quarterly = 4Number of Payment = n = 3 * 4 = 12Interest rate = i = 14 / 4 = 3.5%Payment =…

Q: Suppose you invest $200 a month for 6 years into an account earning 8% compounded monthly. After 6…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: sume that you plan to buy a condo 5 years from now and you need to save for a down payment. You plan…

A: solution given Annual deposit 2500 Interest rate 4% Number of years 5 years…

Q: You have $400 and a bank is offering 3.5% interest on deposits. If you deposit the money in the…

A: The FV of an asset is the value that the asset acquires assuming that it grows at a fixed rate for a…

Q: mpounded monthly. You plan to put $1,000 per year over the next 2 years as well.  How much will you…

A: To determine the value of the bank account, we need to determine the effective annual rate given the…

Q: You have $300 and a bank is offering 5.5% interest on deposits. If you deposit the money in the…

A: FV = PV * (1 + r)^nWhere FV = Future ValuePV = Present Value = $300r = rate of interest = 5.5%n =…

Q: you expect to have $3, 000 in one year. A bank is offering loans at 11% interest per year. How much…

A: Future value=$3000Interest rate=11%Period=1 year

Q: Suppose you want to have $400,000 for retirement in 30 years. Your account earns 5% interest. How…

A: Computation as follows: Hence, each month deposit will be $480.62.

Q: Your bank will pay you an interest rate of 0.102% per week. You want to have $22, 500 in 10 years.…

A: Future value=$22500Interest rate=0.102%Period=n=10 years=10 x 52=520 weeks

Q: You are planning to buy a house in 8 years. You would like to be able to make a down payment of…

A: Continuous compounding is often used in financial calculations because it simplifies mathematics and…

Q: You plan to buy a house in three years and would like to put $100,000 down at the time of buying.…

A: The concept of money's time worth reveals that any sum today is worth more as compared to what it…

Q: Use the savings plan formula to answer the following question.   You put ​$300 per month in an…

A: Monthly investment = $300Interest rate = 2.5%Period = 17 years

Q: If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much…

A: PV=FV/(1+i)^n (PV= present value FV= Future value i= discount rate  n= Number of period ) FV=…

Q: If you deposit the money in the bank, how much will you have in one year?

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: Lily Enterprise wants to accumulate a total sum of $824,000 in a few years. They want to deposit…

A: The theory of compounding facilitates in ascertaining the Future value (FV) of today's money. It is…