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Suppose you spent $800 on clothing in the past six months. If you spend 20 percent less in the next six months, how much will you save?
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- You plan to save $250 a month for the next 24 years and hope to earn an average rate of return of 10.6 percent. How much more will you have at the end of the 24 years if you invest your money at the beginning rather than the end of each month?Suppose you need $1,000 in one year and $2,000 more in two years. If you can earn 9%, how much do you need to put up today?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?
- Suppose that you drive 24,000 miles per year and gas averages $4 per gallon. a. What will you save in annual fuel expenses by owning a hybrid car averaging 50 miles per gallon rather than an SUV averaging 12 miles per gallon? b. what is your monthly fuel saving? c. If you deposit your monthly fuel savings at the end of each month into an annuity that pays 7.3% compounded monthly, how much will you have saved at the end of six years?How much would be in your savings account in 11 years after deposting $150 today if the bank pays 8 percent per year?Suppose that you want to save $14000 over the next 6 years and you know that your savings will earn 5.5% p.a. interest (calculated monthly). How much do you need to put into the savings account each month to achieve your goal? Give your answer to the nearest penny. Your Answer:
- You decide to stop drinking coffee and set aside the cost savings for your future, you estimate you will be able to put aside $100 per month, assuming a rate of 9% how much will you have in 10 years?If a person spends $10 a week on coffee (assume $500 a year), what would be the future value of that amount over 10 years if the funds were deposited in an account earning 4 percent?If an average home in your town currently costs $300,000, and house prices are expected to grow at an average rate of 5 percent per year, what will an average house cost in 10 years?
- You need $6,000 to buy new furniture. If you have $1,000 to invest today at 8% compounded annually, how long will you have to wait to buy furniture?You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $30,700 at the end of each year for the next 10 years. You expect to earn 10 percent each year. Required: 1. Determine how much you will have saved after 10 years. 2. Determine the amount saved if you were able to deposit $33,200 each year. 3. Determine the amount saved if you deposit $30,700 each year, but with 12 percent interest. (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine how much you will have saved after 10 years. Note: Round your final answer to the nearest whole dollar. Balance in the Savings Account $ 490,483If you are saving the same amount each month in order to buy a new sports car when the new models are released, which of the following will help you determine the savings needed? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity