A family is considering putting aluminum siding on their house as it needs painting immediately. Painting the house costs $10000 and must be done every 9 years. What price can the family afford for the aluminum siding if they earn interest at iss = 8.91 % on their savings ? '365 %3!

A family is considering putting aluminum siding on their house as it needs painting immediately. Painting the house costs $10000 and must be done every 9 years. What price can the family afford for the aluminum siding if they earn interest at iss = 8.91 % on their savings ? '365 %3!

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You would like to purchase a vacation home when you retire 10 years from now. The current cost of the homes that interest you is $273,429; however, you expect their price to rise at 4.47% per year for the next 10 years. How much must you save each year in nominal terms (the same amount each year) for 14 years, starting next year, to just be able to pay for the vacation home if you earn 4.4% APR (compounded annually) on your investments?
You found your dream home! The down payment is $29,000. However, you still need 40% of the down payment plus required improvements will cost another 18% (First: what total % of the down payment do you need? _____). You borrow the money from your Savings & Loan, but you must pay it back within 10 years at an interest rate of 14%. 3) Compound Interest (paid quarterly n = _____))
1. You want to buy a Toyota Prius on your 27th birthday. You have priced these cars and found that they currently sell for $30,000. You believe that the price will increase to $39,000 in seven years when you are ready to buy. You can presently invest to earn 9 percent. If you just turned 20 years old, how much must you save at the end of each of the next 7 years to be able to purchase the Toyota Prius in 7 years? (show your work and justify your answer.) A
A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $2,100. After installation the solar water heater will produce a small amount of hot water every day, forever, and will require no maintenance. How much must the homeowner save on water heating costs every year if this is to be a sound investment? (The interest rate is 4% per year.) A. $99 B. $84 C. $129 D. $114
Installing a solar panel system on your roof comes with a total upfront cost of $18,000 after all tax credits. If the solar panels reduce your utility bill by $1000 per year, what is the Payback Period of installing the solar panel system? Round to one decimal place. Numeric Answer:
4. Your parents are planning to buy a second house at the price of $400,000 with 20% down payment. While their bank offers a mortgage loan rate of 4% per annum. What is their monthly mortgage payment if they decide to pay off the mortgage in 15 years? You need to borrow the rest 80% of the house price and finance. Show all work.
You start saving up to buy your dream house. The house is valued at $620,000 right now. You think you can buy the house in 7 years. The housing market is inflating at 3.0% a year. How much will the house cost in 7 years? Show work.
You need $6,000 to buy new furniture. If you have $1,000 to invest today at 8% compounded annually, how long will you have to wait to buy furniture?
You hope to buy your dream car four years from now. Today, that car costs $54,500. You expect the price to increase by an average of 3.1 percent per year over the next four years. How much will your dream car cost by the time you are ready to buy it? A. $58,340.00 B. $58,666.67 C. $61,578.79 D. $61,818.02 E. $61,023.16 please type out all of your work
10) The Jacobs family is planning to buy a home. They have some money 10 for a down payment already. They see a home they like and compute that they would need to borrow $213,000 from a bank over a 30-year period. The APR is 6.75%. (a) What is the monthly payment, to the nearest cent? (b) What is the total of all of the monthly payments over the 30 years? (c) What is the total interest for the 30 years? (Section 8-3) *
The Weidmans want to save $25,000 in 4 years for a down payment on a house. If they make monthly deposits in an account paying 12%, compounded monthly, what is the size of the payments that are required to r their goal? (Round your answer to the nearest cent.) $

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