A bookstore offers you the following deal: you pay $32 today (in January) and you get 9% off the price of everything you purchase in December (for simplicity assume exactly 12 months from now). If your savings account earns 4.72% APR (compounded monthly), how much do you have to buy in December to just break even on the offer?

Q: You have $2,000 on a credit card that charges a 21% interest rate. If you want to pay off the credit…

A: Monthly payment is a fixed periodic payment which is made by a borrower to the lender.

Q: You've just bought a new​ flat-screen TV for ​$2,800 and the store you bought it from offers to let…

A: Price of TV (PV) = $ 2,800 Annual interest rate = 15% Monthly interest rate (r) = 15%/12 = 1.25%…

Q: You want to purchase a new car in 4 years and expect the car to cost $40,000. Your bank offers a…

A: Solution:- When an equal amount is paid each period at the end of period, it is called ordinary…

Q: You have $164,000 in an account today paying 2.8% interest. What are the monthly withdrawals you can…

A: The annuity refers to the series of payments made periodically in exchange for a lump sum payment.…

Q: You want to be able to withdraw $3,500 each month for 20 years. Your account earns 10% interest. How…

A: Present value of annuity is the value of recurring regular interval future cashflow discounted to…

Q: You are ready to buy a house, and you have $30,000 for a down payment and closing costs. Closing…

A: Mortgage loans are paid by equal and fixed monthly payment that carry the payment of interest and…

Q: You want to buy a $18,000 car. You can make a 10% down payment, and will finance the balance with a…

A: Monthly installment is that amount which is paid every month it's includes the interest and…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: If you want to have $875 in 36 months, how much money must you put in a savings account today?…

A: Present value:Present value is a financial concept that refers to the current worth of a future cash…

Q: You work for a furniture store. You normally sell a living room set for OMR 4,000 and finance the…

A: Present Value:   The present value is the value of the sum received at time 0 or the current period.…

Q: a $145,000 home. You found a bank that offers a 30-year loan at 3.5% APR. What will be your monthly…

A: A mortgage is a loan used to purchase a property or real estate. The property serves as collateral…

Q: You have $4,500 on a credit card that charges a 16% interest rate. If you want to pay off the credit…

A: Monthly Payment: Monthly payments let a borrower pay down part of the remaining sum, which is…

Q: You are trying to save up for a downpayment on a home and you need $55, 000 to cover closing costs…

A: Future value=$55000Monthly payment=$975 Interest rate=7.65%Monthly rate=7.65/12= 0.6375Future value=…

Q: A new furniture set costs $ 2800. If you make a down payment of $ 300 and finance the rest at a rate…

A: Furniture cost = $2800 Down payment = $300 Loan amount (P) = $2800 - $300 = $2500 Monthly interest…

Q: rate

A: Introduction: Simple interest can be defined as interest which is computed from the principal loan…

Q: Suppose you found the house that you have been looking for years! It comes with a price tag of…

A: Price of house: $210,000Down payment: 10%Loan rate: 3.5%Loan period: 30 years

Q: You have $2,500 on a credit card that charges a 15% interest rate. If you want to pay off the credit…

A: Step 1: Step 2: Step 3: Step 4:

Q: If your Visa credit card has an APR of 14.49%, compounded monthly and your current balance is…

A: APR is 14.49% Compounded monthly Current Balance is $425.69 Time period 1 year Minimum monthly…

Q: If Say you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by…

A: Car Cost = Future Value Required = 40,000 N = 60 months Monthly Interest Rate = 0.25% Monthly…

Q: You want to buy a $23,000 car. You can make a 10% down payment, and will finance the balance with a…

A: A loan refers to a contract between a borrower and a lender where a sum is exchanged on the promise…

Q: You have $1000 in an account earning 4% APR compounded daily.  At the same time, you are to pay a…

A: Interest rate compounded daily is 4% Amount in account(PV) is $1000 Amount needs to pay in future…

Q: You want to buy a car. The loan amount will be $29,000. The company is offering a 4% interest rate…

A: Annuity is a series of equal periodic payments for a specified period.With periodic rate (r), period…

Q: you want to buy a 25000 car. the company is offering a 2% interest rate for 48 months.  what iwll…

A: Given, Cost of car = $25,000 Rate of interest = 2% p.a No. of months = 48

Q: You plan to buy a $300,000 home with a 20% down payment. The bank suggests two options: a 15-year…

A: Introduction: Mortgage: A mortgage is a loan from a bank or a mortgage lender that helps a person to…

Q: You've just bought a new flat-screen TV for $4000 and the store you bought it from offers to let you…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: You have a balance of 15,000 on a credit card that charges an APR of 20% (compounded monthly). You…

A: Annual Percentage Rate is a financial term that represents the true cost of borrowing or the…

Q: You have an outstanding student loan with required payments of $600 per month for the next 4 years.…

A: Loans are paid in equal monthly payments and these monthly payments carry interest and loan…

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: A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the…

A: a-1Present value = Cash flow/(1+interest)^number of years that is present value=