Imagine you have $200 today and you think to save your money in a bank for 2 years. The Bank A says that account earns 10% interest, compounded semi-annually. The Bank B says, “We offer you an interest rate 15%, but compounded annually”. Where will you deposit your money? Show calculations.

Q: You want to buy a $190,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: According to Bartleby guidelines, if a question involves multiple sub-parts, then 1st sub 3 parts…

Q: If you deposit $8,000 in a bank account that pays 7% interest annually, how much will be in your…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You have $480 to put into a savings account, and a bank offers you two options: Account A pays 3.1%…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Suppose you borrow $21,000 from your bank to buy a car.  You agree to pay $433.89 per month for 60…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: Imagine you want to earn $1000 in total after 3 years. The Bank A says that account earns 5%…

A: In simple interest, the rate of interest is applied on the principal amount only whereas in compound…

Q: You want to be able to withdraw $50,000 each year for 30 years. Your account earns 10% interest. a)…

A: Check the detailed answer belowExplanation:Part 1: Answer:a) $393,905.65b) $1,500,000c)…

Q: Suppose you invest $160 a month for 5 years into an account earning 9% compounded monthly. After 5…

A: Part (a) Given information, Monthly deposit payment (PMT) = $160Deposit period (t) = 5 yearsMonthly…

Q: HAN ON

A: Downpayment amount=20/100*124000=24800    So Loanable value =12400-24800=99200 Given interest rate =…

Q: How much will you have after 5 years? How much will you have after 5 years if you make the deposits…

A: Each year Deposit RM 2500 Interest Rate 4%

Q: Do you want to By A home for $330,000. You plan to pay 33,000 as a down payment and take out a 15…

A: Loan amount is the amount that is borrowed from a financial institution after paying a certain…

Q: You want to buy a $135,000 home. You plan to pay 20% as a down payment, and take 6.9% interest for…

A: Loans are paid by the equal monthly payments that carry the payment for principal amount and also…

Q: the amount of the down payment?

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Jon plans to start a saving account. His plan is to deposit $59 each month into a money market…

A: The number of months it will take to accumulate $1000 can be calculated with the help of NPER…

Q: You have $400 and a bank is offering 3.5% interest on deposits. If you deposit the money in the…

A: The FV of an asset is the value that the asset acquires assuming that it grows at a fixed rate for a…

Q: Suppose you plan to start a saving account. You plan to deposit $98 each month in to a money market…

A: Compound = Monthly = 12Payment = p = $98Interest Rate = r = 6 / 12 = 0.5%Future Value = fv = $2000

Q: You want to buy a $243,000 home. You plan to pay 10% as a down payment, and take out a loa with a…

A: As per Bartleby honor code, when multiple sub-parts of a question are asked, the expert is required…

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…

A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…

Q: If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much…

A: PV=FV/(1+i)^n (PV= present value FV= Future value i= discount rate  n= Number of period ) FV=…

Q: You decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Your bank pays 2.6% interest per year. You put $1,400 in the bank today and $500 more in the bank in…

A: The future value can be calculate using the formula,

Q: You want to be able to withdraw $35,000 each year for 25 years. Your account earns 5% interest. a)…

A:

Q: You want to be able to withdraw $50,000 each year for 25 years. Your account earns 9% interest. a)…

A: An annuity is a payment series that provides its holder with a periodic amount in exchange for a…

Q: You have $5,000 on a credit card that charges a 19% interest rate. If you want to pay off the credit…

A: To calculate the monthly payment we will use the below formula   Monthly payment =…

Q: You want to buy a car. The loan amount will be $28,000.00. A bank is offering a 5% interest rate for…

A: Present Value Method :— It is method for calculating present Value of All periodical future cash…

Q: A bank charges you, the credit card holder, 13.24% compounding monthly. Imagine that you have…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Suppose you have been saving for the last 4 years to buy a new mountain bike. This year you will…

A: We need to use future value of ordinary annuity formula below to calculate total savings in bank…

Q: If you earn 5% per year on your bank account, how long will it take an account with $110 to double…

A: The present value is the present worth of the amount that is paid or received in the future.

Q: You want to buy a $130,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Down Payment The first payment made by a buyer for a credit purchase is called a down payment.  The…

Q: What is the maximum price you can offer for a home in order to have enough money for the down…

A: Information Provided: Amount saved (down payment) = $18,000 Down Payment = 11%

Q: You want to be able to withdraw $25,000 each year for 30 years. Your account earns 8% interest.…

A: Present value of annuity.PV = A * wherePV = Present value of annuity.A = periodic paymentsr =…

Q: You want to save $1,000 a month for the next 10 years to buy a townhome The money will be set aside…

A: Compound = Monthly = 12Payment = p = $1000Number of Payment = n = 10 * 12 = 120Interest Rate = r =…

Q: Suppose you borrowed $1,000 from the bank and the rate of interest was 5%. What would the simple…

A: Simple Interest Simple Interest (S.I.) is a way of computing the amount of interest earned for a…

Q: Your bank pays 2.8% interest per year. You put $1,100 in the bank today and $650 more in the bank in…

A: The amount is two years will be the future value of the deposits made at times 0 and 1.

Q: If you want to have $60,000 in 8 years, how much do you need to deposit in the bank today if the…

A: Here. Required Amount in 8 Years  (FV) is$60,000 Interest Rate (r) is 9% Time Period is 8 years