Jamie and Edith plan to marry in 1 year, but they are worried about the cost of putting on a wedding. They have $30,000 in a savings account that earns 2% APR (compounded monthly). The couple plans on purchasing wedding insurance in 6 months; the cost of insurance is $6,000. How expensive of a wedding can the couple afford? You may assume that the couple uses their savings account to pay for the wedding in 1 year, net the insurance cost that occurs in 6 months. Report your answer without the $ please. Answer:

Jamie and Edith plan to marry in 1 year, but they are worried about the cost of putting on a wedding. They have $30,000 in a savings account that earns 2% APR (compounded monthly). The couple plans on purchasing wedding insurance in 6 months; the cost of insurance is $6,000. How expensive of a wedding can the couple afford? You may assume that the couple uses their savings account to pay for the wedding in 1 year, net the insurance cost that occurs in 6 months. Report your answer without the $ please. Answer:

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

Jim and Jane just married and want to purchase a house. They have $80,000 for a down payment and want to purchase a $380,000 house. If they borrow the balance for 15 years at 5.5%, how much are their monthly payments?
Seth and Alexandra Moore of Elk Grove Village, Illinois have an annual income of $120,000 and want to buy a home. Currently, mortgage rates are 4.0 percent. The Moores want to take out a mortgage for 30 years. Real estate taxes are estimated to be $5,160 per year for homes similar to what they would like to buy, and homeowner's insurance would be about $1,620 per year. Using a 28 percent front-end ratio, what are the total annual and monthly expenditures for which they would qualify? Round your answers to the nearest dollar. Total annual expenditures $ Monthly expenditures $ Using a 36 percent back-end ratio, what monthly mortgage payment (including taxes and insurance) could they afford given that they have an automobile loan payment of $450, a student loan payment of $350, and credit card payments of $270? (Hint: Subtract these amounts from the total monthly affordable payments for their income to determine the amount left over to spend on a mortgage.) Round your…
Lara wishes to buy a gift for her parent's golden wedding anniversary. She decided to deposit a consistent amount of money every week into her savings account at an interest rate of 1.5% and made a decision not to withdraw any amount from the account. How much money will she have after 2 years if she decided to deposit $750 each week?
Jan wants to plan for her daughter's education. Her daughter, Rachel was born today and will go to college at age 18 for five years. Tuition is currently $15,000 per year, in today's dollars. Jan anticipates tuition inflation of 6% and believes she can earn an 11% return on her investment. How much must Jan save at the end of each year, if she wants to make her last payment at the beginning of her daughter's first year of college? $4,680.37 $7,334.72 $3,882.03 $2,547.54
Karen wishes to buy a gift for her parents' golden wedding anniversary. She decided to deposit a consistent amount of money every week into her savings account at an interest rate of 1.5% and made a decision not to withdraw any amount from the account. If her goal is to save $350,000 for 3 years, how much money does she need to deposit each week to reach her goal?
The parents of a newborn baby would like to put money away today to cover 100% of the child's expected total 4 - years of college tuition. The first tuition payment is due exactly 18 years from today, and the next three payments are due at the end of years 19, 20 and 21. Suppose that the parents estimate that the cost of tuition will be $86,000 per year for the first three years, but that the fourth year's tuition will be $96,000. Which comes closest to the amount of money that needs to be set aside today if the interest rate is 6% ? A. $ 104, 719 B. $ 136, 639 C. $ 16,857 D. $ 113, 608 E. $ 198, 781
Tom and Kyra Courtney are considering buying a house and are researching the potential costs. Their adjusted gross income is $144,000. The monthly mortgage payment for the house they want would be $1,450. The annual property taxes would be $9,400, and the homeowner’s insurance premium would cost them $876 per year. What is the front end ratio and will they be able to qualify?
Amanda and Zack are saving for their first child. They know he/she will be expensive and would like an extra $5000 in the bank when the baby comes. Amanda and Zack are not planning to have a baby for at least 3 years. They found a savings account that will earn 4.7% interest compounded quarterly. How much money should they invest to be financially prepared for their first child? Round to the nearest dollar.
You have an older borther who plans to marry his long time gf after 6 years. The couple estimated that they need P 1 000 000 for their wedding 6 yearsrs from now. They plan to save the same amount of money each year starting the end of this year in order to cover the wedding expenses. If they can invest their money in an instrument thay yields 5% annually how much do they need to save every year?

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