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?

Q: Jane wants to set aside funds to take an around the world cruise in four years. Jane expects that…

A: PRESENT VALUE Present Value is the current value of future Sum of money. Present Value is…

Q: Mr. Ram wish to work for another seven years and wants to buy a second home in Munnar after his…

A: Future Value Required = 2,00,00,000 Time Period (N) = 7 years i.e. 14 semi annual payments Interest…

Q: Suppose you have $4,000,000 when you retire and want to withdraw an equal amount each year for the…

A: The regular fixed periodic deposits/withdrawals made at each interval are recognized as an annuity.…

Q: Your parents say they will loan you $15,000 today for college. They would like to be repaid $21,000…

A: Present value = pv = $15,000 Future value = fv = $21,000 Time = t = 10 years

Q: Kevin and Jennifer are ready to retire. They want to receive the equivalent of $40,000 in today's…

A: To calculate the lump sum that Kevin and Jennifer need to invest today, we can use the present value…

Q: suppose you want to make sure you have 2,000,000 when you retire in 35 years. what even annual…

A: We need to use future value of ordinary annuity formula to calculate the annual payment. The formula…

Q: Don Williams wants to buy a boat five years from today. He will need $40,000. Don wants you to…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: monthly nominal rate of return must his investment earn for him to achieve his goal?  2. If the…

A: Present value refers to the value present today of the future stream of payments based on the…

Q: he Sandhill are planning for a retirement home. They estimate they will need $228,000 4 years from…

A: Calculate the amount that must be deposited at the end of each of the 4 years to fund the home…

Q: Susan Orman wants to pay $1500 semiannually to her granddaughter for 10 years for helping her around…

A:

Q: You have 35 years left until retirement and want to retire with $4.5 million. Your salary is paid…

A: Salary received at the end of the current year$63,000Salary increment percentage3.3%Annual…

Q: Josh Collins plans to buy a house for $299,000. If that real estate is expected to increase in value…

A: The concept of time value of money states that money or a financial security’s or an asset’s worth…

Q: Mr. James would like an income of $300,000 per year in equal instalments for fifteen (15) years. How…

A: Solution: An equal amount received each period at end of period, it is known as ordinary annuity. We…

Q: ichelle Smith is planning on taking her family to Disney World in three (3) years’ time. She plans…

A: Future value of the money include the amount that is being deposited over the period and amount of…

Q: Susan plans to make an investment today which promises to return to her $3,000 each year for ten…

A: Using excel PV function

Q: You have a client who wants to buy a house in 2 years. He needs $40,000 for a down payment. If he…

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

Q: 10. Nabil is considering buying a house while he is at university. The house costs $200 000 today.…

A: Given, Outflow = $ 200000   Infows =  $2000 per month for 5 years (60 months) $ 210000 at the end…

Q: You have a client who wants to buy a house. He needs $40,000 for a down payment and has $30,000…

A: Here we have to invest $ 30000 at the 5% annual rate but compounded quarterly. and want $ 40000 in…

Q: In three years, Bernie Slight wants to have $15,000 for a down payment on a house. He is going to…

A: Let the amount saved in year 1 be x. We are going to determine the FV of each of the deposits and…

Q: The Hamptons want to have $2,750,000 for their retirement in 30 years. How much should they save…

A: Accumulated amount required after 30 Years (A) = $2,750,000 Period = 30 Years Number of monthly…

Q: Alexander will take a trip using $5500 of his investment funds that return 8% per year. To pay for…

A: Here,Value of Own Fund (Vo) is $5,500Value of Borrowed Fund (VB) is $10,000Total Funds required for…

Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…

A: Given, Discounting rate=6%12 months=0.5% per month Period=5 years×12 months=60 months

Q: Sandra needs to save $46000 over the next 5 years. If she can save $6400 per year and earn an 12%…

A: Amount required = $46,000 Annual savings (C) = $6400 Interest rate (r) =0.12 Period (n) = 5 Years…

Q: Starting next month, I plan to invest $500 per month for 10 years to reach my goal of $100,000.…

A: The rate of interest is used in the calculation of the interest amount on the principal value. The…

Q: Your favorite uncle wants to give each of his favorite nieces and nephews $30,000 now while he is…

A: First, convert R as a percent to r as a decimalr = R/100r = 10/100r = 0.1 rate per year,Then solve…

Q: Hannah wants to have $ 1500 to help pay for a new deck in 10 years. If she wants to put her money…

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

Q: Mr. and Mrs. Davis needs to have $100,000 to start their own catering business in 15 years.  They…

A: Future value (FV) of the savings should be $100000.Number of years ( n ) of savings/investment is 15…

Q: You'd like to have $1,000,000 saved in 35 years so that you can retire a little bit early. If you…

A:

Q: Your parents are planning to retire in 20 years. They currently have $1,000,000 and they would like…

A: The objective of this question is to find out the annual interest rate required for an investment of…

Q: Ben Collins plans to buy a house for $281,000 If that real estate property is expected to increase…

A: We need to use future value formula to calculate approximate value of house seven years from now.FV…

Q: Suppose you want to use this fund to buy a $346,000 houseboat when you retire in 40 years. How much…

A: Future value = $346,000  Interest rate = 4.75% compounded monthly Period = 40 years  Payments are…

Q: Debra Moore needs $20,000 3 years from now. How much should she invest today in order to reach her…

A: Answer : Future value = $20,000 Interest rate = 6% n = 3 Years Calculation of Present value :…

Q: Ms. Lee is thinking about her retirement fund and she still have another 15 years to reach her…

A: Annual deposit (P) = RM 4,800 Annual interest rate (r) = 6% Number of annual deposits (n) = 15

Q: You want to accumulate $1,250,000 prior to retirement.  If you can earn 10% per yr. and have the…

A: RATE (10%/12) 0.833% TIME PERIOD (30 years * 12 months) 360 PRESENT VALUE $0 FUTURE VALUE…

Q: ts to buy a shopping complex in Vancouver 3 years after completing his Masters. The complex will…

A: The present value or today value will decrease with increase in period but will increase with…

Q: Yoir neighbour would like to set money asideto purchase land in 15 years. Theybwould like to gabe $…

A: Annual payment refers to an amount that is paid every year for the accumulation of money for the…

Q: Kelvin has 45 years left until retirement and wants to retire with RM4 million. Assuming that his…

A: First we need to calculate he monthly payment to accumulate the amount required for retirement .…

Q: 100 a 80é in 10 years. He estimates that the total cost will be $170,000. If he can put aside…

A: The rate of interest on an annuity refers to the percentage at which the sum of money invested in an…

Q: Carla Willis will invest $26,000 today. She needs $52,317 in 12 years. What annual interest rate…

A: Future Value=Present Value(1+i)^12 52317=26000(1+i)^12 (2.0122)^1/12=1+i i=1.06-1 i=6%