If Say you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by making monthiy deposits.our payments increase every month by $x while your first month deposit is $150, What should x be if you want topurchase your dream car in 5 years? Assume monthly interest of 0.25%, and monthly compounding Say, you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by making monthly deposits.Your payments increase every month by Sx while your first month deposit is S150. What should x be if you want topurchase your dream car in 5 years? Assume monthly interest of 0.25%, and monthly compounding.

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

If Say you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by making monthiy deposits. our payments increase every month by $x while your first month deposit is $150, What should x be if you want to purchase your dream car in 5 years? Assume monthly interest of 0.25%, and monthly compounding

If Say you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by making monthiy deposits. our payments increase every month by $x while your first month deposit is $150, What should x be if you want to purchase your dream car in 5 years? Assume monthly interest of 0.25%, and monthly compounding

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 want to save for a down payment on a new home in the future. You can invest $225 at the end of each month, and you expect to earn 6% APR compounded monthly on your investment. How much will you be able to have saved in 5 years? Your Answer: Answer
You want to buy a $18,500 car. The company is offering a 3% interest rate for 4 years. a. What will your monthly payments be? Round to the nearest cent.
Suppose you want to accumulate $20,000 for a down payment on a house in 5 years. How much must you deposit today into an account with an APR of 5% compounded monthly in order to have $20,000 in 5 years? PV = PMT= FV = APR = Periods = Compounding:
C) What is the present value of $7,500 per year, at a discount rate of 8.5 percent, if the first payment is received 10 years from now and the last payment is received 25 years from now?You have signed up for your 401k and will deposit $750 into your 401k when you are paid at the end of each month. If you earn a compound annual rate of return of 6%, how much will you have in 15 years?What would your monthly car payment be if you financed a $35,000 car for 3 years at a rate of 6%?The appropriate discount rate for the following cash flows is 12 percent compounded quarterly. What is the present value of the cash flows? Year 1 CF=700, Year 2 CF=600, Year 3 CF=0, Year 4 CF=1000
Suppose you want to save up for a down payment on a house in 5 years. You plan to save $1,000 per month in a savings account. The savings account offers an annual interest rate of 6%. a) If the payments are made at the end of each month, how much money will you have at the end of 5 years? b) If the payments are made at the beginning of each month, how much money will you have at the end of 5 years?
Suppose you want to have $300,000 for retirement in 20 years. Your account earns 10% interest. a) How much would you need to deposit in the account each month? S b) How much interest will you earn? S
You want to buy a $30,000 car. You can make a 10% down payment, and will finance the balance with a 3% interest rate for 60 months (5 years). What will your monthly payments be? LA
You are buying a house for $290,000.00 with a downpayment of $29,000.00. The loan will be paid back over 20 years with monthly payments of $1,609.25. If the interest rate is 4.2% compounded monthly, what would the unpaid balance be immediately after the eleventh payment? What is the equity after the eleventh payment? The unpaid balance would be $ The equity would be $
Suppose you found a CD that pays 2.5% interest compounded monthly for 3 years. If you deposit $11,000 now, how much will you have in the account in 3 years? (Round to the nearest cent.) What was the interest earned? (Round to the nearest cent.) Now suppose that you would like to have $20,000 in the account in 3 years. How much would you need to deposit now? (Round to the nearest cent.) $ Question Help: Video 1 Video 2 Submit Question Q Search
Suppose you want to have $700,000 for retirement in 20 years. Your account earns 6% interest. How much would you need to deposit in the account each month?

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