Justin wants to save $45,000 to buy a new car in 5 years without obtaining a loan. He knows he can invest the money in a CD (certificate of deposit) earning 6.3% annually. How much money does Justin need to invest today?     $3514.78     $5314.80     $15433.78     $33,154.78

Q: Sarah Jessica Parker is looking to buy a 2023 Toyota Camry car for twenty five thousand dollars.…

A: Compound = monthly = 12Present Value = pv = $25,000Interest rate = r = 7 / 12 %Monthly Payment = p =…

Q: Your brother has decided to ask you for advice about saving up for his teenager's college fund. He…

A: Answer: Calculation of the amount that your brother need to deposit today: The amount that your…

Q: A man is investing $3,000 at 8 1/4% simple interest to save for a new car. In how many years will he…

A: SIMPLE INTEREST FORMULA: A=P×1+RT WHERE, P=principal A=amount R=rate  T=time

Q: You have already saved $6975 to buy a used car. You invest this money in a certificate of deposit…

A: Future Value refers to the value of the current asset at any specified future date for a given…

Q: A man decided to save to buy a new $30,000 car to take care of his family in his hometown.He has…

A: A. Time to be taken can be computed as follows : Calculations :

Q: 1. Tucker deposits $7,400 in an account that pays 3.15% simple interest. He keeps the money in the…

A: Hi student Since there are multiple questions asked, we will answer only first question.  Time value…

Q: Todd can afford to pay $390 per month for the next 7 years in order to purchase a new car. The…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Bob wants to save $20,000 to buy a new car in 4 years without obtaining a loan. He knows he can…

A: The amount required to invest today can be calculated with the help of present value function.

Q: Part I: Joe just graduated from College and has found a nice job. As a graduation gift his father…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: 5) Seven years ago, Tom bought a house for $80,000, which appreciated in value at 9% per year due to…

A: The equity value of house is  Home equity =Value of house- loan amount

Q: Jane is planning on saving for a car purchase in 8 years, however, she can only contribute to the…

A: Here we will use the concept of annuities and time value of money. The amount invested by Jane at…

Q: Tom wants to go on a cruise for his Senior Trip. He needs $2000 for the trip. Tom is currently a…

A: The current value of a future financial asset or cash flow stream, given a predetermined rate of…

Q: Situation 2: Mr. Franklin wants to save for a new sports car that he expects will cost $38000 four…

A: 17.a)For 17 a ) in the image a mentioned exact answer....Answer is not matching with the…

Q: uy has nothing saved for college. He wants to pay $42,000.00 per year to the school for 4 years. The…

A: College fees=$42000Period=4 yearsInterest rate-8.46%

Q: Miguel can afford to pay $125.00 per month for a car. He has $5,000.00 saved up for a down payment.…

A: When a borrower borrows a loan from the lender, He has to pay some interest charges on the loan…

Q: 1. John’s goal in life is to be a millionaire. He has $6,980 in a saving account and figure he is…

A: 1. The formulation sheet is annexed below: To open the "NPER function" window - MS-Excel -->…

Q: Boris is saving for the down payment on a house. He deposits $13,750.00 today, $6,000.00 in 5…

A: The Future Value of a lumpsum deposit: An amount deposited earns an interest over its investment…

Q: Erwin deposited Php 25,000 in a bank promising 5% simple interest. How long should the amount stay…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: Alex would like to purchase a new car for $15,000. How much will his monthly payments be if he took…

A: Given The cost of new car is $15,000 Term of loan is 3 years Interest rate is 7%

Q: Your sister just deposited $11,500 into an investment account. She believes that she will earn an…

A: The current worth that would be same as the amount saved by the sister in seven years at 10% can be…

Q: Thomas has $1,000 in his bank account today to spend on a TV. Thomas needs exactly $1,070 to…

A: This is based on the concept of the time value of money. Money invested or deposited today grows in…

Q: Nick invested $2,000 in a bank savings account today and another $2000 a year from now. If the bank…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Patrick Cantlay just purchased a home for $500,000. His mortgage is a 30-year mortgage, that…

A: Mortgage loans are secured loans in which a home is collateral and are paid in equal monthly…

Q: Dan is saving for a down payment on a house. If he saves $150 at the end of each month for 4 years,…

A: The real interest that an investor earns on the investment and a borrower pays on the loan after…

Q: Michelle Payne deposited $16,000 in a savings account paying 6.25% simple interest. How long (in…

A: Calculation of Time Period of Deposited Amount Simple Interest Formula  A = p (1 + rt) Here A =…

Q: o capitalize on all the money he earned as a teenager, Justin has $500,000 that he wants to invest…

A: The concept of time value of money will be applicable here. When we make an investment today it…

Q: Cam is entering high school and is determined to save money for college. Cam feels he can save…

A: Put simply, the total amount of a sequence related to cash flows at a future date that is…

Q: out tion Johnny wants to save some money for his daughter Alexis's education. Tuition costs $12,500…

A: The objective of the question is to find out how much Johnny needs to save each year for his…

Q: (Compounding using a calculator) Bart Simpson, age 10, wants to be able to buy a really cool new car…

A: Time = t = 17 - 10 = 7 YearsCurrent Price of Car = $18,000Growth rate = g = 4%Interest rate = r = 7%

Q: 6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000.…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Scott wants to go to Belgium for his 50th birthday. He needs $10,000 for the trip. How much money…

A: Present Value refers to the value of cash flows today which is to be received at some future time…