8. Jamie wants to buy a computer that will cost $1200 one year from now. How much should he deposit at theend of each month in an account that pays 7.35% per annum, compounded monthly?N1%PVPMT-FVP/YC/YAnswer=

The concept of time value of money will be used here. Money deposited today will grow in future due…

Answered: 8. Jamie wants to buy a computer that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose you invest $200 a month for 6 years into an account earning 9% compounded monthly. After 6 years, you leave the money, without making additional deposits, in the account for another 20 years. How much will you have in the end? $ Suppose instead you didn't invest anything for the first 6 years, then deposited $200 a month for 20 years into an account earning 9% compounded monthly. How much will you have in the end?
Fernando Jose would like to buy a cellphone payable for 6 months starting at the end of the month. How much is the cost of the cellphone if his monthly payment is P3.000 and interest is 9% compounded semi-annually? a. P17,545.08 b. P18,674.80 c. P20,000.00 |d. P21,785.45
(Please type answer no write by hend)
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46. Suppose you are planning to take this car through bank loan but you already have saving of Rs.150,000 which you paid to bank as down payment and rest you are agree on monthly installment at 18%. Compute monthly payment.
Jack wants to buy a boat today today but has realised that if he takes out a loan he can only repay $500 quarterly, with payments made at the beginning of each quarter, over the next 10 years. How much can he spend on his boat today if the interest rate is 12.9% per annum compounded quarterly? Question Answer a. $3075.40 b. $2724.00 c. $11507.84 d. $11148.31
4. You are saving up for a cruise after graduation. The cruise will cost $1,500. How much must your save monthly if graduation is 19 months away and the current interest rate in your savings account is 2%? a. Assume your first deposit happens at the end of the month and the last deposit happens at the end of the 19th month i. $78.95 ii. $77.40 iii. $65.67 iv. $77.77 b. Assume your first deposit happens today and the last deposit happens at the end of the 18th month i. $77.64 ii. $77.90 iii. $79.33 iv. $76.24 5. Your rich great grandmother just passed away and left you $1 million dollars. She also attended UNO. You decided to set up a scholarship fund in her honor. a. You want to offer a full-ride scholarship in the amount of $25,000 per year forever. If the interest rate = 4%, how much money will you have left over for yourself after paying the endowment? i. $250,000 ii. $375,000 iii. $625,000 iv. $750,000 b. If you decide to give half of your inheritance to the university, how big of…
3. You are purchasing an annuity that will pay you 15,000 a year for 5 years, beginning in year 20. The rate of return on the annuity is 3.5%. What are you going to pay for the annuity today? colqmsx3 le охолова 4. You are purchasing a car from your grandparents. You agree to pay them $2000 today and $2000 per year for the next 3 years. If you assume an interest rate of 2%, what is the value of the car? noillum S.So und
You bought a television for $1000 using an installment plan. You plan to pay it off in two years. How much in monthly payments (end of each month) would it take to pay off, if the interest rate is 6%? a. $52 b.$48.70 c. $40.10 d.$44.32
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You decided to save every month for the next ten years a certain amount so that you can make a down payment for a house in your early thirties. If you think you can make an annual return of 9% and you think you will need to save $50,000 for the down payment, how much should that monthly payment be? a. $258 b. $464 c. $3291 d. $536
A 79. Subject:- finance

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8. Jamie wants to buy a computer that will cost $1200 one year from now. How much should he deposit at them end of each month in an account that pays 7.35% per annum, compounded monthly? N= 1% PV = PMT FV P/Y = C/Y= Answer=