(b) Aminah plans to buy a house in Shah Alam which the market price is RM450,000. To buy the house, she needs to pay 10 percent down payment and only has 5 years to accumulate that amount of money. Calculate the amount she needs to deposit every year if the account pays 8 percent interest annually,

(b) Aminah plans to buy a house in Shah Alam which the market price is RM450,000. To buy the house, she needs to pay 10 percent down payment and only has 5 years to accumulate that amount of money. Calculate the amount she needs to deposit every year if the account pays 8 percent interest annually,

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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Similar questions

Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a 30 year loan at 3.85% interest for the balance.a) How much is the loan amount going to be?b) What will the monthly payment be for Manuel and Aponi?c) How much of the first payment is interest?d) What is the total of the payments?e) How much interest was paid?
Mystia Green is considering the purchase of a house, which will cost her $450,000. She will borrow the entire purchase price and make monthly payments over the next twenty years. The first payment is due next month, and the interest rate is 6.50% per annum (p.a.), compounded monthly She will owe $_________on the house immediately following the 121 st payment.
Vickie decides to sell her current home and move to a larger home. She estimates that she can sell her current home for $2,000,000 and can buy a larger home for 6,000,000. She plans to use the entire $2,000,000 sale proceeds as a down payment on the new home and will finance the remainder for 10 years at 6% nominal annual interest compounded monthly. What is her estimated monthly mortgage payment? Christine wants to be able to purchase a dream car for about $50,000 on January 1, 2028, just after she graduates from graduate school. She has a full-time job and started making deposits of $730 each month into an account that pays 6% compounded monthly beginning with the first deposit on February 1, 2023. The last deposit is to be made on January 1, 2028. Determine how much money she would have saved to buy the car. Will she be able to buy her dream car?
Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out a 30 year loan at 4.9% interest for the balance. a) How much is the loan going to be? b) What will the monthly payment be for Evan and Emmanuel? c) How much of the first payment is interest? d) What is the total of the payments? e) How much interest was paid?
Elizabeth has $17000 to invest. She requires $34000 for a down payment for a house. If she is able to invest at 8%, how many years will it be before she will accumulate the desired balance? Select answer from the options below 7 years. 9 years. 8 years. 6 years.
How much is the cash price of the car if Mrs Ocampo is to pay Php 21,000 monthly in 5 years? The interest rate is 10% compounded monthly and her downpayment is Php 120,000.
6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?
Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at the end each month into an account earning 3.6% compounded monthly in order to have the money she needs?
Alex wants to buy a shopping complex in Vancouver 3 years after completing his Masters. The complex will cost CAD 17,000,000 and he would need a 20% down payment after 5 years. To save for the down payment, Alex could deposit one lump sum today at a 6% annual compound rate. Alternatively, Alex can wait one year and make one lump sum deposit. Will Alex need more money to deposit if she does it now or after one year? How much more is required? (Use Formula Approach)
Katie wants to save $1500 over the next two years to use as a down payment on a new car. If her bank offers her 5% interest, what monthly payment would she need to put into an ordinary annuity in order to reach her goal? Round to the nearest cent.
Tom will pay 10000 dollars to Monica 2 years from now. John wants to buy this debt from Monica. How much would John pay to Monica in order to buy this debt if the yearly interest rate in the market is 10% for the first year and 12% for the following year?
Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,440 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,360 plus an additional investment at the end of the second year of $6,800. What is the NPV of this opportunity if the interest rate is 1.6% per year? Should Marian take it?

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