4. X generator has a first cost of $20,000, AOC of $15,000, and 5 of $5000 after 4 years. Y generator has a first cost $40,000 with an AOC of $15,000 and 5 of $8000 after 6 years. Find AW of each if the interest rate is 12% per year: 5. A student wants to pay for her education in three years from now. She expects that the tuition fees will be $20000 in three years. Approximately, how much money should she put currently in her savings account if a bank pays 3% interest rate on that account? 6. Assume $100,000 is available for investment where MARR = 16% per year. If alternative X would earn 35% per year on investment of $40,000, and Y would earn 29% per year on investment of $65,000, the weighted averages are:
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- Suzanne starts her college education four years from now. For her college education, she is going to save $1,100 a quarter for the next four years in a bank account paying 13 percent interest. How much will she have at the end of the fourth year? Must identify variables and use excel m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FVYour younger sibling asks you to borrow $20. You, a smart financial professional, agree but also charge interest on the $20. You plan to collect $5 from your sibling each week for 8 weeks to repay the initial loan. What is the NPV of this project, assuming you invest the $5 at 12%? a. $4.84 b. $2.11 c. $0 d. $6.88You estimate that you will need $10,000 for education in 8 years. How much must you put away at the end of each year at 6 percent interest to have the college money ready? Show Time value of money imputs
- 10. Maria can afford a $325 per month car payment. She can get a loan at 5.25% interest for 6 years compounded monthly. What formula will you use to find the maximum price for the car she can afford? Write the formula in the space below. Write the variables and what they are equal to. a. b. Solve the problem. Round to the nearest hundredth.K Suppose you have a student loan of $35,000 with an APR of 6% for 40 years. Complete parts (a) through (c) below. a. What are your required monthly payments? The required monthly payment is $ 192.57. (Do not round until the final answer. Then round to the nearest cent as needed.) b. Suppose you would like to pay the loan off in 20 years instead of 40. What monthly payments will you need to make? 22 The monthly payment required to pay off the loan in 20 years instead of 40 is $ 250.75 (Do not round until the final answer. Then round to the nearest cent as needed.) c. Compare the total amount you'll pay over the loan term if you pay the loan off in 20 years versus 40 years. Total payments for the 40-year loan = $ Total payments for the 20-year loan = $You plan to send your first born child to College for a 4-year degree with 4 annual payments. Your first payment will start in 18 years in the amount of $50,000 and grow by 15% per year. Assuming a discount rate of 6%, how much do you need to set aside today to fund your child's education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $34,000.
- Required: a to d. Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $55,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? e. What is the savings in interest cost between 3.50% and 5%? f. If Harriet uses 30 years instead of 25 for both 5% and 3.50%, what is the difference in interest? Complete this question by entering your answers in the tabs below. Required A to Required E Required F D Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $55,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? Note: Do not round intermediate calculations. Round your answers to the nearest cent. Monthly payment Total cost of interest a. 25 Years, 5% b. 25 Years, 4.5% c. 25 Years, 4% d. 25 Years, 3.5%4. Laura would like to have $10 000 in 10 years to use as a down payment for a house. She is considering two investment options: Investment A: 5 % annual interest, compounded quarterly. Investment B: 4.7% annual interest, compounded monthly. a) Compare the principal needed for each option. b) Which investment is better? Explain your reasoning.You plan to send your first born child to DePaul for a 4-year degree with 4 annual payments. Your first payment will start in 25 years in the amount of $ 58,982.71 and grow by 9% per year. Assuming a discount rate of 6%. You start saving in one year from now a fixed amount for 20 total deposits. What is the amount of that annual savings deposit in order to save enough to fund the education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $13,000.
- A student needs to borrow $7,000 to pay for college. She can get a loan at an APR of 10% to paid off in monthly installments over the next 4 years. If she decides to pay the loan off in monthly installments over 3 years instead of 4 years at the given APR, how much money will she save altogether. Round to the nearest centSuppose an individual wants to have $200,000 available for her child's education. Find the amount that would have to be invested at annual rate 7%, compounded continuously, if the number of years until college is 6 years.Suppose you have a student loan of $25,000 with an APR of 12% for 20 years. Complete parts (a) through (c) below. a. What are your required monthly payments? The required monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) b. Suppose you would like to pay the loan off in 10 years instead of 20. What monthly payments will you need to make? The monthly payment required to pay off the loan in 10 years instead of 20 is $ (Do round until the final answer. Then round to the nearest cent as needed.) c. Compare the total amount you'll pay over the loan term if you pay the loan off in 10 years versus 20 years. Total payments for the 20-year loan = $ Total payments for the 10-year loan = $