A bank offers a savings account with a 3% annual interest rate, compounded monthly. Sars wants to open a savings account and make one deposit now that will enable her to withdraw $700 to go on vacation 5 months from now. How much money does Sara need to deposit now?

Q: Your parent started to deposit monthly $20,000 in the bank 2 years after birth. The bank offers are…

A: Amount deposited $20,000 monthly Rate of interest is 6%.

Q: Sarafina is making monthly payments into an annuity. She wants to have $600 in the fund to buy a new…

A: Monthly payment The minimum amount needed every month to be paid by an individual.

Q: Ms. Whitmell is helping her two friends, Sally and Johnny, invest money to save for the future.…

A: Sally Present value = $1,200  Interest rate = 3.8% per annum compounded quarterly Johny Present…

Q: Your grandmother has been putting $600 into a savings account on every birthday since your first…

A: The future value of an annuity can be calculated using the formula,

Q: Maya will buy a new pair of skis for $850.00.  She has $400.00 in her savings account.  Her parents…

A: Principal Amount: It is the initial amount that is to be repaid at the end of the period for which…

Q: Marta needs some quick cash for books at the beginning of spring semester, so she borrows $500 at 9%…

A: We can use the formula for simple interest:Simple interest = Principal × Rate × TimeHere, Principal…

Q: Your parents start saving for your sister's college education. She will begin college at age 18 and…

A: Present value and future value is computed by discounting or compounding an amount. Future value is…

Q: Rayleene is getting a loan to buy a used car from a seller. The price of the car is $8200.00. She…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: a) Dylan will start start college in 9 years. Dylans parents want to save a total amount of $32 000…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: A young couple decide to take advantage the current first-time home buyer credit and buy a new…

A: A mortgage loan is generally taken to purchase or maintain real estate. The borrower pays the lender…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: The finance charge is the cost determined by multiplying the estimated rate of finance with the…

Q: how many years will it take her to pay back the loan?

A: A person defers his or her current payment liability via loan. A loan is provided by a bank, who…

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: WORKING AND EXPLANATION

Q: James and Kate would like to have $30,000 in 6 years in order to purchase anew mini van. What amount…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Inez wants to borrow $2100 to start a small business.  She has found a bank that offers a 7% add on…

A: Calculation of Monthly Payment:The monthly payment is $47.25.Excel Spreadsheet:

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Interest Rate = 6% APR Previous Balance = $1,173 Calculation of Number of days between is as follow:…

Q: To be able to buy a new computer, Donna decides to save for 5 years. She opens a savings account…

A: Simple Interest = P * R * TWhere P = Principal = $400R = Rate of Interest = 3%T = Time = 5 years

Q: Nadia needs to borrow $5000 to pay for ocean cruise tickets for her family. She can borrow from a…

A: APR stands for Annual Percentage Rate. It is a standardized way of expressing the total cost of…

Q: Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a…

A: Compounding is an important technique which increases the effective interest rate. Effective…

Q: Paige is planning on depositing $1,000 in one of two different savings accounts from two financial…

A: Annual percentage rate (APR) refers to the stated interest rate or the nominal rate that is being…

Q: Emilia and Liam are purchasing a home. They wish to save money for 10 years and purchase a house…

A: Compounded monthly means that the interest on the savings or investment account is calculated and…

Q: Samantha wants to open a clothing store using her own money. She estimates that she will need about…

A: Here, ParticularsValuesFuture value of money (FV) $80,000.00Interest rate2.40%Number of compounding…

Q: on needs to save some money to buy her first car after she graduates. At the beginning of each…

A: A key idea in finance and investment research is the future value, which is used to assess the…

Q: for just one year of spending $100 on dinner every other saturday how much would debbie pay in…

A: For one year of spending $100 every other Saturday, the total number of charges would be:Number of…

Q: Helen can earn 3% interest in her savings account. Her daughter Roberta is 11 years old today.…

A: The future value of deposit is the value of the current deposits on a future date based on the time…

Q: Mary has saved enough money to make a $10,000 down payment on a $3 finance the purchase with an auto…

A: Monthly payment refers to an amount that is paid at every month for the repayment of loan amount…

Q: Amanda wants to take the next four years off work to travel around the world. She estimates her…

A: Requirement 1: Funding Travels with 12% InterestSince Amanda's savings earn interest, we can't…

Q: Ursula wants to buy a $21,000 used car. She has savings of​ $2,000 plus an​ $800 trade-in. She wants…

A: The monthly payment is the payment that includes the principal amount as well as interest amount and…

Q: HSBC bank offers a savings account with a 3% annual interest rate, compounded monthly. Kate wants to…

A: Rate of interest per month compunded monthly = 3%12=0.25%

Q: Boniface needs to save $500 to buy a new computer. They have $396 to invest in a savings account…

A: Compound interest: Under the compound interest is interest is calculated on the amount that includes…

Q: Sandra wants to take the next six years off work to travel around the world. She estimates her…

A: The annuity's Present worth is the current lump sum amount that an investor will require for making…