Ordinary annuity of a fire truck that cost 480,000 but with the help of the town you can save 4,500 a month with an annual interest rate of 9.3% how many months will it take to pay for the truck?
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- The pipe guy plans to deposit $78,000 into an investment each year for the next 10 years so he can fund a new brick and mortar pie shop in downtown Flagstaff the investment pays 6% annual interest how much money will the pike I have at the end of 10 years? what are you trying to find in the above problem? a. The future value of a single amount. b. The future value of an annuity c. The present value of an annuity d. The present value of a single amount.Supposed you want to buy a used car but your savings is not enough. To do this, you borrow P60,000 to be amortized in four equal payments at the end of each of the next four years, and the interest rate is paid 15 percent on the outstanding loan. What is the annuity payment?You want to save money from your businessoperation to replace a truck that has been used indelivery. The truck will be replaced after 12 yearsfrom now and the replacement cost would be about$60,000. If you earn 5% interest on your savings,how much must you deposit at the end of each yearto meet the needs?
- To save for a down payment on a home, you invest in an annuity that pays 7.0% annual interest, compounded annually. If you contribute $8,000 every year for 5 years, how much interest would you earn during the 5 years? Round your answer to the nearest cent.Do NOT round until you have calculated the final answer.A local Dunkin’ Donuts franchise must buy a new piece of equipment in 4 years that will cost $81,000. The company is setting up a sinking fund to finance the purchase. What will the quarterly deposit be if the fund earns 16% interest?If you borrow $25,000 from a local finance company and you are required to pay $4,424.50 per year for 10 years, what is the annual interest rate on the loan?
- To save for a down payment on a home, suppose you decide to invest in an annuity that pays 7.0% annual interest, compounded annually. If you contribute $8,000 every year for 5 years, how much interest would you earn during the 5years? Enter your answer, rounded to the nearest cent, without the dollar sign or comma ($21,678.1235 should be entered as 21678.12.)You buy a new truck for your trailer that costs $55,000. What are your monthly payments for a 5 year loan assuming an annual interest rate of 4.75%? Your down payment was $10,000. Make sure your answer is shown to the nearest whole cent.You want to build a $40,000 shed on your property in 3 years. You find that the bank can offer several options with a rate of 6% compounded quarterly. Your options are the following: Option 1: You make a one time deposit money today as one lump sum into a savings account to gain $40,000. How much would you need to deposit? How much interest do you earn? Option 2: You make a deposit at the end of each quarterly into a savings account to gain $40,000. How much will the deposit be for each quarter? How much interest do you earn? Option 3: You decide that you want to build the shed today and instead of saving the money up, you take out a loan in the amount of the $35,000 which is how much it will cost to make the shed today. How much will the quarterly payment be to pay-off the loan in 3 years? How much interest do you need to pay?
- It is estimated that you will pay about $80,000 into the Social Security system (FICA) over your 40-year work span. For simplicity, assume this is an annuity of $2,000 per year, starting with your 26th birthday and continuing through your 65th birthday. Solve, a. What is the future equivalent worth of your Social Security savings when you retire at age 65 if the government’s interest rate is 6% per year? b. What annual withdrawal can you make if you expect to live 20 years in retirement? Let i= 6% per year.The Hunters are trying to save $8000 as the down payment on a new recreational vehicle. If they can deposit $200 at the end of each month in an account paying 4% compounded monthly, how long will it take them to accumulate the necessary amount? (Solution should be entered in years accurate to the hundredths decimal place)You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over 10 years, and the nominal interest rate will be 8% with interest paid annually. 1: What will be the annual loan payment? 2: Construct Amortization Schedule Table.