6. The woman has a saving goal of $25,000 7 years from now. To help her reach the goal, her father offers to give her $1,000 now. She plans to work at a local coffee shop and make 7 additional deposits, one at the end of each year. The first deposit is made at the end of the first year. If all her savings are deposited in a bank that pays 5% interest, how much should her annual deposit be?

Q: 7. You are hoping to put down $3000 on a car in 2 years. If the bank pays 4% interest, compounded…

A: FV = 3000 Interest rate = 4% compounded monthly time = 2 Years

Q: 2. A savings bank offered you 6% nominal interest compounded every 2 months You deposited $4,000. a)…

A: here we calculate the future value and the effective interest rate of the following , so by using…

Q: Robert wins $5,000,000 at the lottery; however, he is not going to receive the full prize…

A: To find the present value of future cash inflows, we discount the values of future cash inflows with…

Q: You want $1,000,000 in the bank when you retire in 35 years. How much should you deposit each year?…

A: We want $1,000,000 in the bank at the time of retirement. Interest rate is 10% Here we have to…

Q: 2. A 21-year old inherits BD100,000 from a distant relative who has deceased. She decides to spend…

A: Given information, Future amount from investment (F): BD1,000,000 Interest rate (r): 8%…

Q: Maya would like to borrow $4500. Her bank offered her a two-year personal loan with monthly…

A: Hi! thanks for the question but as per the guidelines, we answer only one question at one time.…

Q: 9. In how many years will $1,500 yield an interest of 5200 at 2% simple interest?

A: The simple interest does not include the compounding factor. Formula for simple interest: FV = P…

Q: Question 1: If you borrowed 18000$ at 4% annual interest. You agreed to repay the loan with five…

A: Answer; 1)Total Interest: $2,216.44 2)Interest= $448.82Principal=$3,594.47 3)Balance after 3rd…

Q: 4. If Andy borrows R350 today at CBD Bank at 15% interest rate per annum, how much will have to be…

A: Here we calculate the amount of Andy which he pay to the bank after the year  by using the given…

Q: • A man saves R200 at the end of each year and  lends the money at 5% compound interest. How much…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Suppose that you’ve got $100 in a savings account earning 5% interest. How many years will it take…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: - Payday Quik Loan's customers must repay $105.50 one monthtater for each $100 of paycheck advance.…

A: Here, it is given that the present value is $100 and the future value is $105.50 after one month.…

Q: You are thinking of investing $3600 this year. You have received advice from family members. • Aunt…

A: Money is a commodity accepted by general consent as a medium of economic exchange. Here, we…

Q: How much will a bank deposit of $2,000 that pays 10% compound interest be worth at the end of 3…

A: Compounding interest is a type of interest calculation where the interest earned on a principal…

Q: Compute the missing values in the following cash flow diagrams Question 1 What is the present value?…

A: Given a specific return rate, the present value of an investment is the current worth of that…

Q: You are getting a loan to buy your first home. It is a $250,000 home with three bedrooms and two…

A: In the business cycle, a recession is a negative trend characterised by a decline in production and…

Q: 1) You have a goal of saving $1500 over 6 years. Assuming bank interest rates are 5%, What annual…

A: Here we calculate the annual deposit amount by the following method as follow;

Q: 7. Lawrence takes out a loan for $8000 to start a business after high school. The bank charges him…

A: Here, given information is, Lawrence loan amount (P): $8000 Interest rate (r): 8% per year Time…

Q: company buys a machine for $17,000, which it agrees to pay for in six equal annual payments,…

A: Interest rate is the amount charged over and above the principal amount by the lender from the…

Q: Mia is 27 years old and he saw a bank offering a time deposit plan with 6% interest. Shee does not…

A:

Q: Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made…

A: Future value can be calculated as follows. Monthly interest rate (i) is 0.0033. Time period is 360.…

Q: 2. Mrs. X has just purchased a new car for 1M. She makes a down payment of 30% of the negotiated…

A: Answer in step 2.

Q: 6) Two annuitics in perpetuity have the same effective annual interest rate. The first annuity pays…

A: Given that; Two annuities in perpetuity have same effective annual interest rate. The first annuity…

Q: A baseball player is offered a 5-year contract that pays him the following amounts: Year 1: $1.08…

A: The current worth of a sum of money to be received or paid in the future, adjusted for the time…

Q: Leon and Heidi decided to invest $3,000 annually for only the first eight years of their marriage.…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: You open a 5-year certificate deposit (CD) for $1,000 that pays 2 % interest compounded annually.…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: ill deposited 100,000 pesos in bank account earning interest at the rate of 10% compounded…

A: Amount deposit = 100,000 r = 10% n = 10

Q: 18. Suppose your city is building a new park, and issues bonds to raise the money to build it. You…

A: Simple interest is used for calculating the charged interest on the loan.

Q: 17. What is the effective annual interest rate if the nominal interest rate is 6%, compounded…

A: Formula used - Effective annual interest rate = (1 + (nominal rate / number of compounding periods))…

Q: 3. Suppose you make an annual contribution of $2,000 to your savings account at the beginning of…

A: Future value (FV) is a term used to describe how much, at some future point and with a particular…

Q: . What is the value of the bank account at the end of 25 years if the initial deposit is $25,000 at…

A:

Q: Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to…

A: Deposit = 10,000 deposit after 2 years = 5,000 withdraw after 5 years = 8,000 interest rate = 10%

Q: Let's say that you invest $8000 at 3.1 percent annual interest for 6 years. What will its value be?…

A: Given that, Principal (P) = $8000 Rate (R) = 3.1% = 0.031 = r Time (t) 3years

Q: 8. What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year?

A: Future value (FV) is the value of an present asset at a future date in view of an assumed rate of…

Q: 2. How much must be deposited at the end of each 3 months at 8% interest compounded quarterly to…

A: Future value = 90000 $ Time = 7 years Interest rate = 8 % compounded quarterly Quarterly rate  = 8 %…

Q: In how many years will an amount be doubled if the interest rate is 6%?

A: Interest rate can be defined as the percentage of the loaned amount a borrower is obliged to pay to…

Q: 5. Liezel deposited 500,000 cash a gift to her brother but her brother has to wait until the amount…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: 19. Ma. Nochna Pula borrowed $10,000 at 6% annual compound interest. She agreed to repay the loan…

A: here we calculate the amount and choose the correct option , so the calculation of the annual…

Q: Suppose you deposited $200 at the end of every year for seven years in an account that earned 6%…

A: Compound interest formula: A =P (1+r)t