Samy would like to buy a house with cash ten (10) years from now. The house is currently selling at RM200,000, with an expected annual inflation rate of 3%. in the next five (5) years, he expects to receive a reimbursement of RM30,000 for overpaying his tuition fees. Samy can reinvest the reimbursement money at 6% per annum before he uses it to pay for the house down payment in year 10. For the balance sum, Samy plans to save a fixed amount of money annualy for 10 years, earning an annual interest rate of 6%. How much money does Samy have to save on annual basis? B)

Samy would like to buy a house with cash ten (10) years from now. The house is currently selling at RM200,000, with an expected annual inflation rate of 3%. in the next five (5) years, he expects to receive a reimbursement of RM30,000 for overpaying his tuition fees. Samy can reinvest the reimbursement money at 6% per annum before he uses it to pay for the house down payment in year 10. For the balance sum, Samy plans to save a fixed amount of money annualy for 10 years, earning an annual interest rate of 6%. How much money does Samy have to save on annual basis? B)

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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Alexa needs $8,600 worth of new equipment for his shop. He can borrow this money at a discount rate of 6% for a year. Find the amount of the loan Alexa should ask for so that the proceeds are $8,600.Maturity = $
investor plans to pay his son’s university tuition fees for 4 years starting 18 years from now. The current annual cost of university is £9,200, and they expect this cost to rise at an annual rate of 2%. In his planning, he assumes that the appropriate discount rate is 3% per annual. How much must he saves each year, starting next year, if he plans to make 17 identical payments? Show all the calculations step-by-step. Formulas and diagram(s) are essential.
Mystia Green is considering the purchase of a house, which will cost her $450,000. She will borrow the entire purchase price and make monthly payments over the next twenty years. The first payment is due next month, and the interest rate is 6.50% per annum (p.a.), compounded monthly She will owe $_________on the house immediately following the 121 st payment.
Adam has his eyes set on buying an apartment in New Kingston within the next 6 years. Based on investment advice, the Apartment will cost $4 Million Dollars in total payouts. Adam will however benefit from a one million dollars deposited in his bank account as a gift from his grandparents. Adam approached a mortgage bank to finance the rest of the money required. He will be given six years at an interest rate of 9 % to complete the payments. a) Calculate the annual payments to be made on the loan each year. b) Prepare the Amortization schedule for the duration of the Loan. c) Adam was given another option of paying 10 % on the same loan compounded semi annually for 6 years, show how the Amortization Schedule would look for the first three (3) payments.
Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out a 30 year loan at 4.9% interest for the balance. a) How much is the loan going to be? b) What will the monthly payment be for Evan and Emmanuel? c) How much of the first payment is interest? d) What is the total of the payments? e) How much interest was paid?
Harry Taylor plans to pay an ordinary annuity of $6,000 annually for ten years so he can take a year's sabbatical to study for a master's degree in business. The annual rate of interest is 2.9%. How much will Harry have at the end of three years? How much interest will he earn on the investment after three years? At the end of three years Harry will have $ (Round to the nearest cent as needed.) He will earn S interest on the investment after three years. (Round to the nearest cent as needed.)
-How much should you put into a 10% savings account in order to have P50,000.00 in five years if compounded annually? -What is the present worth of two 500 payments at the end of the fourth year and fifth year, if the interest rate is 10% compounded annually? -Joseph buys a new house using an interest only loan where he pays only the interest on the value of the home each month. The home is valued at $200,000.00 and Joseph pays 5% interest per year on the home. How much is his monthly interest payment?
Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the remainder for 15 years at the APR of 8.2%, compounded monthly. a) How large are the monthly payments? $ b) What will be their loan balance right after they have made their 156th payment? $ c) How much interest will they pay during the 13th year of the loan? $ d) If they were to increase their montly payments by $120, how long would it take to pay off the loan? Give your answer in whole months.
Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could earn a 6% annual retum investing his money elsewhere. What is the most he would be willing to invest today in this opportunity?
Harry Taylor plans to pay an ordinary annuity of $4,900 annually for ten years so he can take a year's sabbatical to study for a master's degree in business. The annual rate of interest is 3.5%. How much will Harry have at the end of three years? How much interest will he earn on the investment after three years?
Jack would like to have RM 500,000 in his bank account in exactly 20 years to fund his retirement in Sabah. He opens an account today with a deposit of RM Y and each subsequent annual deposit will increase by 5%. Jack plans to make a total of 20 annual deposits. The annual effective interest rate is 6%. Determine Y.
The newly married Brahmin plans to buy a dream house for 1.5 billion rupiah. the type of funding chosen by the Brahmana is a house ownership loan or KPR Band for 10 years and the down payment that must be paid is 20%. How much installments must be paid by the Brahmin at the end of each month, if the loan interest rate is 15% per year?

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