Mike and Terri estimate that they want to buy a house for $186,000.00, and they need to make a down payment of 17.5% of the cost of their house. If they have 18 months to save for the down payment, how much do they need to invest into an monthly so that they can reach their goal? account earning 4.518% compounded

Mike and Terri estimate that they want to buy a house for $186,000.00, and they need to make a down payment of 17.5% of the cost of their house. If they have 18 months to save for the down payment, how much do they need to invest into an monthly so that they can reach their goal? account earning 4.518% compounded

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

If Samatha finances the entire cost of a $700 bike at an APR of 2.95%, how much will she end up paying in total for the bike after paying off her loan in 2 years?
When Gustavo and Serrana bought their home, they had a 5.9% loan with monthly payments of $870.60 for 30 years. After making 78 monthly payments, they plan to refinance for an amount that includes an additional $35,000 to remodel their kitchen. They can refinance at 4.2% compounded monthly for 25 years with refinancing costs of $625 included with the amount refinanced. How long will it take to pay off this new loan if they pay $1200 each month?
Mr. and Mrs. Davis needs to have $100,000 to start their own catering business in 15 years. They expect to earn 7% annually on their investment. What amount do they need to have today so that they can reach their financial goal of having $100,000 in 15 years?
Mr. Fish wants to build a house in 10 years. He estimates that the total cost will be $170,000. How much should be put aside each year assuming his account earns 10% per annum?
A couple want to buy a house that costs $542 000. They pay a 20% deposit and borrow the rest of the money as a reducing balance loan for 25 years at 8.25% per annum with interest calculated and repayments made monthly. Determine the monthly repayment.
Suppose your parents have just retired and have $1 million in a retirement account. For how many years can they withdraw $5,000 at the beginning of each month for expenses, assuming that the account will continue to earn a 5 percent annual return until it is exhausted?
Payton wants $5,000 saved in 2 years to make a down payment on a house. How much money should she invest now at 3.2% compounded monthly in order to meet her goal?
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?
The Weidmans want to save $25,000 in 4 years for a down payment on a house. If they make monthly deposits in an account paying 12%, compounded monthly, what is the size of the payments that are required to r their goal? (Round your answer to the nearest cent.) $
How much do you need to save each year for 30 years in order to have $775,000, assuming you are investing the money in an account that earns 8%? How much of the $750,000 comes from principal (you’re out of pocket costs)?
Debra Moore needs $20,000 3 years from now. How much should she invest today in order to reach her goal if she can earn 6% compounded annually? Round answers to the nearest dollar.
Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at the end each month into an account earning 3.6% compounded monthly in order to have the money she needs?

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