Jack and Jill need to save $8600 toward a new car. How long will it take them if they save $210 a month earning interest at 6.2% per year? (Treat as an ordinary annuity.) (State your answer in years rounded to the second decimal place, e.g., 12.34) Answer: Check

Jack and Jill need to save $8600 toward a new car. How long will it take them if they save $210 a month earning interest at 6.2% per year? (Treat as an ordinary annuity.) (State your answer in years rounded to the second decimal place, e.g., 12.34) Answer: Check

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

Boniface needs to save $500 to buy a new computer. They have $396 to invest in a savings account which pays 9.63% interest, compounded daily. How many years will it be until they have enough money to buy the new computer? Give your answer to two decimal places.
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How much will Larissa have in her savings account 10 years from now, if she deposits the $5817 that her grandfather gave her at 5% interest rate, compounded annually? Round your answer to 2 decimal places and do not enter any symbols such as $, % or commas. Answer: 8725.50
Sandra wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $31,000 (if she needs more, she will work odd jobs). Sandra believes she can invest her savings at 12% until she depletes her funds. (Click the icon to view Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Requirement 1. How much money does Sandra need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 12% interest rate, Sandra needs Requirement 2. After speaking with a number of banks, Sandra learns she will only be able to invest her funds at 4%. How much does she need now to fund her travels? (Round your answer to the nearest whole dollar.) With a 4% interest rate, Sandra would need If Sandra's savings are earning a lower interest rate (4%), she will need to save to…
If this family of 4 wants to save up for a vacation in 2 years, how much should they deposit each month into a savings account earning 1.85% annual interest? iF THEY HAVE TO SAVE UP $4580 (Round your answer to the nearest DOLLAR and type it without any commas, dollar signs, ect) If instead they decide to take the vacation now and put it on a credit card, how much would they need to pay each month to cover the cost of this credit card charge after 2 years if their credit card charges an APR of 19% (which is the average APR for new credit cards currently)? (Round your answer to the nearest DOLLAR and type it without any commas, dollar signs, ect) $ How much more will this family pay for their vacation using their credit card instead of saving?
Your parents will retire in 26 years. They currently have $230,000 saved, and they think they will need $1,250,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
Can you show me how this is done? Ava Darling plans to buy a house in 10 years and needs $17,446 for a down payment. If the annual interest rate is 6%, how much does Ava Darling need to invest today to have $17,446 in ten years? Selected Answer: 15,469 Correct Answer: 9,742 ± 5
Without using Excel and using the formula, Cheryl is setting up a payout annuity and wishes to receive $1200 per month for 20 years. A. How much does she have to deposit if her money earns 8% interest compounded monthly? B. Find the total amount Cheryl will receive from her payout annuity.
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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?
2. (a) A college student, Amy, decides to fund a retirement account with $2000 per year for 8 years, with the first deposit made one year from today. The rate of return will be 10%. How much will she have in her account when she retires in 40 years? (b) Amy’s friend, Dacio, decides he will start funding his retirement account 8 years from now (first payment in 9 years). He then will invest $2000 each year for 32 years. If his rate of return is 10%, how much will he have when he retires in 40 years?
. Problem 5.03 (Finding the Required Interest Rate) еВook Your parents will retire in 16 years. They currently have $400,000 saved, and they think they will need $2,100,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.

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