AssumingJoe just won a jackpot of $50,000and would like to save a portion of it so as to have $40,000 to put down on a house after 5 years. If the bank pays a 6% rate of interest, howmuch money will Joehave to set aside from the jackpot winnings?

Q: ) Assume that Luke Smith wants to retire in 20 years. He expects to live for another 15 after his…

A: In financial planning the present value the required amounts in future must be equal to future value…

Q: Suppose you buy a home and finance $275,000 at $2,273.17 per month for 30 years. What is the amount…

A: Interest amount refers to an amount that is being charged on the amount that is being financed by…

Q: Suppose you are 40 years old. Your only debt is a mortgage = $450,000. The current value of your…

A: Mortgage refers to the loan taken by individual for purchasing tangible fixed asset that is…

Q: 5. Your great uncle recently died and left you $50,000 in his will. The lawyers tell will is complex…

A: Money has time value because value of money decreases with time due to the interest rat and…

Q: year investment certificates that pay interest compounded quarterly. What is the minimum nominal…

A: Information Provided: Present value = $20,000 Future value = $50,000 Term = 5 years Interest rate =…

Q: a businessman needs to have 100,000 due in 5 years. how much must he put into his 10% saving account…

A: Here in this question, we are required to calculate how much business man should put into investment…

Q: ou want to buy a home but not take out a mortgage. You want to buy it outright when you are able to…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: You have just inherited $560,000. You plan to save this money and continue to live off the money…

A: Data given: PV=$ 560,000 FV=$ 1000,000 rate=4.83% p.a.

Q: If you are willing to loan someone $100 and expect to be paid back $200 and earn 12% on your…

A: Given Loan amount is $100 Amount to be paid back is $200 Rate of return is 12%

Q: You plan to save every year and accumulate $150,000 in 6 years to make the down payment for your…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Ronald Gonzales, who recently sold his Bicycle, placed P10,000 in a savings account paying annual…

A: Future Sum is the accumulated value of given amount with interest over each period. In given case,…

Q: Suppose you buy a home and finance $285,000 at $2,243.17 per month for 30 years. What is the amount…

A: A person often takes a loan when buying large ticket items like a home or a car.The loan has to be…

Q: 3. If you let your friend borrow Php 50,000 for an interest rate of 5% compounded continuously, when…

A: A = P (1 + r/n)^(nt) Where, P = initial principal balance, r  = interest rate, n = number of times…

Q: Max the mouse needs $10,000 in 5 years. How much should Max deposit today if the bank has a simple…

A: Simple interest is the type of interest that is calculated on the original amount invested and not…

Q: financial manager wants to invest $50,000 for a client by putting some of the money in a low-risk…

A: Interest on investment depends on the prevailing interest rate and period of deposit done and weight…

Q: Assume you have won a lottery prize of $5,000, which works out great since you want to buy a new…

A: Money has time value and value of money changes with time and is not same again in future this is…

Q: Mr. Mason wants to open an account in a bank with a 3% interest rate, so he can withdraw after the…

A: The concept of time value of money will be applied here. Money deposited today gets compounded and…

Q: n Guimo is going to purchase a house with a purchase price of P. ay as a down payment. He is going…

A: It is assumed that monthly payments are to be made. The given problem can be solved using PMT…

Q: You win at a lottery that pays you $1000 a week for life! (a) Assuming that a year counts 365.25…

A: Since the lottery pays $1000 a week A. Total week in a year = 365.257 = 52.17 weeks Total annual…

Q: 6: You invest $10000 today for 9 years at 6% interest. What is the total amount of interest on…

A: Interest on investment refers to the return or profit earned from investing a certain amount of…

Q: 1. John’s goal in life is to be a millionaire. He has $6,980 in a saving account and figure he is…

A: 1. The formulation sheet is annexed below: To open the "NPER function" window - MS-Excel -->…

Q: magine that the interest rate on your savings account is positive and there is no inflation rate.…

A: Due to  interest rate money grow with time but due to the inflation the value of money decreases…

Q: (2) Jack has deposited P1,000 into a savings account. He wants to withdraw it when it has grown to P…

A: Future value = Present Value* (1+Rate of Interest)t Here t is the time period or we can also say…

Q: Alice wants to be a 'wise' money saver. She has P100,000 and is willing to put it in the bank. she…

A: Simple interest is interest without compounding that is there is no interest on interest and there…

Q: Prof. Kim offered $1000 three year later for cleaning his room.  If the interest rate is 5%, what is…

A: Given: Future value = $1,000 Interest rate (i) = 5% Time period (n) = 3 Required: Present value

Q: What annual interest rate would the investment have to yield to double in 5 years?

A: Present Value (Investment) = $2500 Future Value = $2500 x 2 = $5000 Time = 5 Years Rate of Return =…

Q: You just inherited some money, and a broker offers to sell you an annuity that pays $4,300 at the…

A: Present value of annuity is computed as follows:-PV = A*wherePV= Present value of annuityA= periodic…

Q: you just won some money in the lottery and would like to save a portion of it so that you will have…

A: The concept of time value of money will be applicable here. As per the concept of time value of…

Q: 3) Tired of being broke: Suppose your client "wants" to deposit $10,000 into a bank that pays them…

A: This relates to the application of time value of money. The amount being deposited in the bank will…

Q: 1. Paulo won the lottery. He is offered a series of payments $100,000 per year for 10 years. What is…

A: The concept of money's time worth reveals that any sum currently is worth more as compared to the…

Q: You have to decide whether to invest $100 in a friend's enterprise, where in a year's time the money…

A: To solve this problem, use the concept of present value and compare the outcomes of different…

Q: o capitalize on all the money he earned as a teenager, Justin has $500,000 that he wants to invest…

A: The concept of time value of money will be applicable here. When we make an investment today it…

Q: 1. Zaggy Zargawhoop has an idea for a new business. In order to develop his idea, he needs to invest…

A: Honor Code:- “Hi There, thanks for posting the question. But as per Q&A guidelines, we must…

Q: A man buy a house after 10 years. He expects to buy the house then with 2 million. Calculate the…

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

Q: Calculate the equity each of these people has in his or her bome Fred just bought a house for…

A: Equity=Market value of house-Amount borrow from bank

Q: Suppose Maria gets R13240.10 after investing a lump for 5 years.The bank quoted 11.5% simple…

A: The current amount of money which is received after certain period of years in future  is refer to…

Q: Your have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year…

A: A mortgage payment is a regular commitment that a borrower makes to a lender in order to pay back a…

Q: A few years ago, you purchased a home for $91500. Today, the home is worth $102300. Your remaining…

A: Here, Purchase Price of Home is $91,500 Value of Home Today is $102,300 Mortgage Remaining Balance…