Josh is planning to withdraw $9000 from a savings account at the end of each quarter for 3 years. If the payments are deferred for 6 years and interest is 5.75% compounded semi-annually, what amount must be invested now into the savings account? Rose has saved $90 000. If she decides to withdraw $4000 at the beginning of each month and interest is 6.25% compounded annually, for how long can she make withdrawals?

Q: Jimmy wants to buy a taxi 6 years later. He will need $550,000 as the down payment. He initially…

A: Part (a): Answer: Annual effective rate of interest is 6.14%

Q: decided to deposit ISK 200, 000. deposit into a bank account, annually, for the next 5 years, which…

A: Annual deposit=ISK 200000Interest rate for 2 years=8%Interest rate for 3 years=6%

Q: Lauren plans to deposit $6000 into a bank account at the beginning of next month and $175/month into…

A: Future Value is the value which is measured at a specified date at a given interest rate,  it can be…

Q: At retirement, Maria's saving account has $620,000 in it and is earning 1.2% compounded monthly.…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Mark deposits $50,000 now into an account which will eam interest at a rate of 7% per year, how much…

A: Present value = $50,000 Interest rate = 7% Number of years = 4

Q: Kym plans to deposit $130 in an account at the end of each month for the next three (3) years so she…

A: Future value Future value simply means determining the value of future investments. This approach…

Q: Calculate the total interest earned on the investment.

A: Information Provided: Quarterly Deposit = $344 1-year rate = 2.05% compounded quarterly Period of…

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $200/month into…

A: Future value is the amount accumulated on the deposit made along with interest earned on the…

Q: how much will Lauren have in her account at the end of 6 years? (Assume she makes no withdrawals…

A: The future value (FV) is a financial concept that represents the worth or value of a sum of money at…

Q: ane needs $30,000  to buy a new car in four years. How much should she deposit at the endof each…

A: We will use the concept of time value of money here. The concept of time value of money states that…

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $150/month into…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Gwen decides to make regular deposits every month into an account that earns 8% annual interest,…

A: The question is based on concept of present value and future value of money .  formula as: FV=pmt…

Q: Callie won a grand prize of $40,000. She has decided to invest it today in an account from the…

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

Q: Rachael also wishes to save for retirement. She can comfortably afford to invest R8 500 at the end…

A: Firstly calculate future value of annuity = P*[((1+r)^n)-1]/r Where P =Periodic payment i.e. 8500 r…

Q: Sarah N. Dippity believes the world will end in exactly five years. She has $400,000 in a bank…

A: Value in the account today $400,000. Withdrawals of “P” for 5 years and $50,000 at the end of 5…

Q: Stacey and her husband David have a joint savings account that earns 3.47% interest payable…

A: Present value refers to the discounted value of all future cash flows discounted at a specific rate…

Q: Bro decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

Q: Alexandria has $400,000 saved for retirement in an account earning 2.45% interest, compounded…

A: Solution:- When an equal amount is withdrawn each period, it is called annuity. We know, present…

Q: Leon wants to save a classic car so he deposits $1500 at the end of the years into a savings account…

A: We need to use future value of ordinary annuity formula to calculate worth of deposit after 5 years.…

Q: Tabatha has saved $85, 700.00. If she decides to withdraw $2,726.00 at the beginning of every month…

A: The present value of an annuity is the current worth of a series of cash flows at a certain rate of…

Q: Samantha wants to be able to withdraw $520 at the end of each month for two years while she travels,…

A: Future value of investment = C(1+r)n Where C = cash invested = 9200 r = periodic interest rate =…

Q: John and Rosamond want to retire in 10 years and can save $170 every three months. They plan to…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: Tak wants to save $10 000 for a vacation. He deposits $150 at the end of each month for 4.5 years in…

A: Solved using Financial Calculator  PMT = +/- 150 N = 4.5 years *12 months = 54 I/Y = 8.7/12 = 0.725…

Q: Aryssa has saved $84,100.00. If she decides to withdraw $3,337.00 at the beginning of every month…

A: Present Value = PV = $84,100 PMT = $3,337 Rate = 8.01%

Q: Aryssa has saved $72,100.00. If she decides to withdraw $2,650.00 at the beginning of every month…

A: The present value of an annuity represents the current value of the cash flow series at a particular…

Q: John and Rosamond want to retire in 10 years and can save $140 every three months. They plan to…

A: Future value refers to the total value of an investment or savings at a specified future date,…

Q: Brayden and Noah plan to purchase a home for $140,000. They will pay 20% down and finance the…

A: An annuity is a series of cash flows that involve an equivalent amount occurring at equal time…

Q: Alyssa has $800,000 saved for retirement in an account earning 2.2% interest, compounded quarterly.…

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

Q: Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at…

A: The future value of annuity would be considered the value accumulated in future with a view to…

Q: John and Rosamond want to retire in 5 years and can save $140 every three months. They plan to…

A: Future value is a financial concept that is crucial to understanding the satisfaction of income over…

Q: Shelly deposits the $2000 she got as a birthday gift from her grandmother into an account earning…

A: The company would be considering the value for future through the compounding of interest rates over…

Q: Megan takes out a car loan for $13,000. She intends to make monthly payments for 5 years to pay off…

A: We take loans to make purchases for a car, house etc. The loan is repaid by making fixed periodic…

Q: finance a vacation in 4 years, Elsie saves $370 at the beginning of every six months in an account…

A:

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.