Rachel has a SMART goal to save for the next 7 years to purchase a $100,000 boat. She currently earns $125,000 a year. Her financial advisor believes that she can earn 4% APY on her account. If Rachel plans to save 10% of her monthly income every year, will that allow her to save enough for the boat in her time horizon

Q: Joanna’s Dad is looking to deposit a sum of money immediately into an account that pays an annual…

A: The objective of the question is to find out how much Joanna's Dad needs to deposit into an account…

Q: amy just retired with savings of $8 million. If she expects to live for 43 years and to earn 9% a…

A: Present Value of Annuity Due refers to a concept which determines the value of cash flows at present…

Q: Honey wants to go to Siargao, for four days at the age of 25. She hopes to save $10,000 by the time…

A: The present value method refers to the determination of the present worth of an amount with a…

Q: Roger decides to start an investment account by depositing $5,000 today. In one year he will invest…

A: Initial deposit (Year 0) = $5,000 Year 1 Deposit = $500 Year 2 Deposit = $600 Year 3 Deposit = $700…

Q: Krystal plans to save $500 at the end of Year 1, $600 at the end of Year 2, and $700 at the end of…

A: Money she will save by end of year 3 is future value of all yearly payments

Q: Carolyn is helping to save for her granddaughter’s college fund. It will probably take 18 years…

A: Future value required (FV) = $150,000 Interest rate (r) = 6% Number of annual payments (n) = 18…

Q: Joann wants to save for her daughter's education. Tuition costs $9,000 per year in today's dollars.…

A: The time value of money is a financial concept that acknowledges the idea that a dollar today is…

Q: Anna's son, Steven will start college in 5 years. Tuition costs $29,000 today, increasing at an…

A: Data given:: Tuition costs today = $29000 Annual growth rate in tuition = 5.7% Interest rate on…

Q: Benji wants to purchase a new car in 4 years. He plans on putting $8,000 down. He will be putting a…

A: let payment be = A r=9% m=12 (monthly compounding) n =4 FVA = $8000

Q: Janet's parents want her to go to the same college that they did. They decided to pay a lump sum…

A: The question is based on the concept of Present value

Q: Ashley has a large and growing collection of animated movies. She wants to replace her old…

A: Future value is an estimate of future cash flow ​​that may be received at a future date, discounted…

Q: Angela is planning for her daughter’s university education in seven (7) years’ time. She estimated…

A: Annual payment required to achieve the goal is calculated using following equation Annual payment =…

Q: Brenda Young desires to have $16,500 eight years from now for her daughter’s college fund. If she…

A: Data given: FV= $16500 n=8 years r=12% (compounded annually) Required: what amount should she…

Q: Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he…

A: The correct answer for the above mentioned is given in the following steps for your reference.

Q: Currently, Ally Gator has saved $15,000 in her retirement account. Ally plans on saving $6000…

A: The present value of cash flows presents the discounting value of future cash flows that arises in…

Q: Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he…

A: Future value  The future value indicates the value of a current investment over a specified period…

Q: Michael Jones plans to save $5,928 every year for the next eight years, starting today. At the end…

A: The future value is the amount that will be received at the end of a certain period. In simple…

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

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

Q: Kayla wants to have $100,000 saved when she graduates. She plans to graduate in 6 years and believes…

A: Option a: This option is correct. Let's prove it:As per Kayla the amount she shall invest today is…

Q: Sarah wants to have $20,000 in nine years. If she puts the money in an account which pays 4%…

A: For solving we have to calculate present value of future value considering compounding monthly…

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…

Q: A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn…

A: We need to calculate the persent value of annuity  by using this formula.    PV of annuity =CF*…

Q: Amanda wants to take the next four years off work to travel around the world. She estimates her…

A: Requirement 1: Funding Travels with 12% InterestSince Amanda's savings earn interest, we can't…

Q: Rhonda has saved $1,200,000 in an account. Her goal is to have 1,500,000 saved up to use as down…

A: given, pv = $1200,000 n=5 r=2.5%

Q: Lena is regularly saving money in order to buy a new car at the end of 7 years. If the car is 30,000…

A: Cost of Car is 30,000EUR Interest rate is 2% Time period is 7 years or 7×12 = 84 months To Find:…

Q: Chen's family is saving for a home renovation that they would like to pay for with cash. They would…

A: Data given: Cost of renovation at Year 12 = $150000 Deposit at Year 1 = $10000 Increase in deposit…

Q: Alexa needs $8,600 worth of new equipment for his shop. He can borrow this money at a discount rate…

A: Loan Proceeds are the amount that is disbursed from a loan, which is usually lesser than the loan…

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: Amy currently has $500 in an account with an annual rate of return of 4.3%. She wants to have $3000…

A: Here, Presnet value "PV" = $500 Future value for trip "FV" = $3000 Annual rate of return  = 4.3%…

Q: Sam wants to save money to meet two objectives.  First, he would like to buy a fishing boat 5 years…

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

Q: How much money should she save at the beginning of each 3 months

A: Value at a future point of time is equal to sum of savings made and interest on those savings.…

Q: Munira Al Falasi is 40 years old. She wants to begin saving for retirement with the first payment to…

A: Future Value is the amount in future at a specified date which is equal to the value of the…

Q: Kourtney currently works at Bruin Productions and decide to finally plan for the future, she wants…

A: Information Provided: Future value = $250,000 Term = 10 years Interest rate = 6.1% compounded…

Q: Jane has been given an opportunity to receive 20,000, six years from now. If she can earn 10% on her…

A: Present value is the current value of a future cash flow discounted to the present terms at a…

Q: Payton wants $5,000 saved in 2 years to make a down payment on a house. How much money should she…

A: Here,Required Amount (FV) is $5,000Time Period in years (n) is 2 yearsInterest Rate (r) is…

Q: Honey wants to go to Siargao at the age of 25 and she is 20 years old today. She wants to know how…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…