elle Momba wants to visit her family in Zimbabwe in 2022, which is 7 years from now. She knows that it will cost approximately 200 including flight costs, on-the-ground costs, and extra spending money to stay for 4 months. If she opens an account that mpounds interest at 6% semiannually, how much does she need to deposit today to cover the total cost of her visit? (Round your swer to the nearest dollar.) eposit

elle Momba wants to visit her family in Zimbabwe in 2022, which is 7 years from now. She knows that it will cost approximately 200 including flight costs, on-the-ground costs, and extra spending money to stay for 4 months. If she opens an account that mpounds interest at 6% semiannually, how much does she need to deposit today to cover the total cost of her visit? (Round your swer to the nearest dollar.) eposit

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 decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make annual fixed deposits to achieve your goal. If the interest rate is 2.5%, how much should be deposited each time? Hint use the Financial Function “PMT” to solve for the payment, and PV will be zero. You owe $25,000 to your parents. You promise to make 10 annual payments of $3,000 to settle your debt. What interest rate are your parents charging (estimated up to 2 decimal places), if you make the 10 annual payments beginning one year from now? Hint use the Financial Function “RATE”. Note if you need help use the “Help on this function” feature. This help will include an example for you to follow. You are offered an investment that will pay $14,000 per year for 17 years, beginning one year from now. If you feel that the appropriate discount rate is 3.4%, what is the investment worth to you today? Your grandparents offered you some money via the following options. Assuming an annual interest…
Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a secured add-on interest loan from his bank at 7.35% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $3,600 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.)
Yuli plans to purchase a vehicle, and she is working with two bank offers. . Bank One Loan Offer: $73,800, 6% annual interest, 60 months. . Bank Two Loan Offer: $73,800, 3% annual interest, 84 months. Yuli's ultimate financial goal is to select the loan with the lowest monthly payment regardless of duration. Based on her financial goal, which loan will Yuli choose? O A. Bank One: Loan Offer O B. Bank Two: Loan Offer OC. Both monthly payments are the same. O D. Not enough information given to answer the question.
Please answer all subparts. I will really upvote
Chuck Wells is planning to buy a Winnebago motor home. The listed price is $175,000. Chuck can get a secured add-on interest loan from his bank at 7.45% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $4,100 per month and amortize the loan in 42 months. (a) Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.) $ Can he pay off the loan and keep his payments under $4,100? Yes, under these conditions, Chuck will meet his goal.No, the monthly payment is too high. (b) What are Chuck's options to get his payments closer to his goal? (Select all that apply.) try to negotiate a higher interest ratetry to bargain for a lower sale pricetry to negotiate a lower interest ratemake a lower down paymenttry to bargain for a higher sale pricemake a higher down payment (c) Chuck spoke with his bank's loan officer, who has agreed to finance the deal with a 6.85% loan if Chuck can pay 20% down. What…
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?
Mike and Terri estimate that they want to buy a house for $186,000.00, and they need to make a down payment of 17.5% of the cost of their house. If they have 18 months to save for the down payment, how much do they need to invest into an account earning 4.518% compounded monthly so that they can reach their goal? Mike and Terri need to invest (Note: Your answer should have a dollar sign and be accurate to two decimal places) Preview My Answers Submit Answers You have attempted this problem 0 times. You have 6 attempts remaining. Email Instructor
Sofia wants to start saving immediately for a trip to Hong Kong one year from now. She wants to accumulate P220,000 for the trip. Her savings account pays 12% compounded bimonthly. What must she deposit at the beginning of every two months to reach the target in one year?
Kerri James is considering the purchase of a car, which will cost her $24,600. She will borrow the entire purchase price and make monthly payments over the next six years. The first payment is due next month and the annual interest rate is 3.00%. She will owe $____ on the car immediately following the 18th payment. A. 18,858.19 B. 18,531.57 C. 20,757.33 D. 19,184.00 E. 23,258.56
Klipling wants to have $43257 for a down payment on a house ten years from now. She can either deposit one lump sum today or she can wait two years and deposit a lump sum. Assume an annual interest rate of 2.3%. How much additional money must she deposit if she waits for two years rather than making the deposit today? O 757.32 O 774.73 O 1532.05 O 1640.21 O1603.33
What will be the deposit amount for Jane if she wants to buy a car within 7 years with a price of BDT2500000 and the Bank interest rate is 9%? Remember that Jane wants to make those payments in advance of each Quarter.
Currently (in August, 2021), Abby wants to have $20,000 available in August 2025 to make a college tuition payment.To be able to have this amount available, Abby will make equal annual deposits in an investment account earning 12% annually in August 2021,2022,2023,2024, and 2025. What is the annual amount to be deposited? a.$5,548 b.$4,000 c.$3,148 d.$2,270

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