Michael wants to have $20,000 in an investment account seven years from now. The account will pay 0.4 percent interest per month. If Michael saves money every month, starting one month from now, how much will he have to save each month?

Q: account

A: Introduction: Investments are made by depositing a certain sum of money in the account. At the end…

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A: Future value: Future value is $97,435.86

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A: The concept of time value of money will be used here. As per the concept of time value of money the…

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A: Using excel PV function

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A: in this problem we have to calculate quarterly interest rate and from that we can get present value.

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A: The time value of money is a concept in finance that takes into account the effects of compounding…

Q: Hannah wants to have $ 7500 to help pay for a new deck in 16 years. If she wants to put her money…

A: GIVEN, Future Value  = $7500 Interest rate(r)  = 6.25/100 = 0.0625 Time Period(t) = 16 years Present…

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A: Using excel PV function

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A: Compound = Monthly = 12Payment = p = $300Time = t = 15 * 12 = 180Monthly Interest Rate = r = 0.4%

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A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…

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A: The FV of an investment refers to the total value of its cash flows at a particular future date…

Q: 6) A couple will need $50, 000 for a down payment on a home in eleven years. They plan to invest…

A: The future value of a sum represents its current worth plus interest thereon at a given rate for a…

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A: Computation:

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A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

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A: Renting an apartment refers to the process under which the tenant use the apartment and pays a…

Q: 5. An investor is considering an investment that will pay $2,150 at the end of each year for the…

A: Payment = p = $2150Time = t = 10Interest Rate = r = 18%

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A: Future value is the value of an asset currently based on an anticipated rate of increase in the…

Q: annuity.he plans to deposit $500 into this account each month at 2.4 % annual interest compounded…

A: in this problem we have to find out future value FACTOR and from that we get future value.

Q: Hannah wants to have $1500 to help pay for a new deck in 13 years. If she wants to put her money…

A: Present Value = Future value / e^rt Where r = 8.50% t = 13 years