Situation 2: Mr. Franklin wants to save for a new sports car that he expectswill cost $38000 four and one-half years from now.17. a.) How much money will he have to save each year and deposit in asavings account that pays 6.25% per year, compounded annually, to buythe car in four and one-half years?A. $8746.57B. $8537.28C. $8654.32D. $8472.8918. b) Suppose that Mr. Franklin makes a deposit at the beginning of eachyear, rather than at the end. How much money must be deposited eachyear?A. $6680.42 B. $6753.27C. $6658.73D. $6707.50

17.a)For 17 a ) in the image a mentioned exact answer....Answer is not matching with the…

Answered: Situation 2: Mr. Franklin wants to save…

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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A.)Mr. Franklin wants to save for a new sports car that he expects will cost $38 000 four and one-half years from now. How much money will he have to save each year and deposit in a savings account that pays 6% per year, compounded annually, to buy the car in four and one-half years? B.)Suppose that Mr. Franklin makes a deposit at the beginning of each year, rather than at the end. How much money must be deposited each year?
2.63. Louis Trichardt would like to save $15,000 to use as a down payment on a house. He will deposit $500 a month in a savings account that pays interest at the rate of 6% per year, compounded monthly. How long will it take him to accomplish his objective?
You want to buy a new sports car 3 years from now, and you plan to save $4,800 per year, beginning one year from today. You will deposit your savings in an account that pays 6.0% interest. How much will you have just after you make the 3rd deposit, 3 years from now? a. $14,976.00 b. $15,281.28 c. $16,198.16 d. $9,888.00 e. $20,998.16
4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the purchase price as a down payment. Your annual salary is $44,000 and you can save 18% of this salary every year. How long will it take for you to save for the required down payment? about _____ years?
You decided to save every month for the next ten years a certain amount so that you can make a down payment for a house in your early thirties. If you think you can make an annual return of 9% and you think you will need to save $50,000 for the down payment, how much should that monthly payment be? a. $258 b. $464 c. $3291 d. $536
1. What is the amount you would have to deposit today to be able to take out $2070 a year for 2 years from an account earning 14 percent. 2. If you desire to have $38300 for a down payment for a house in 11 years, what amount would you need to deposit today? Assume that your money will earn 4 percent.
Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $160,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? O 2.28% O 2.20% O 2.22% 2.33% 2.59%
Provide answer
suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal?
Suppose you deposited $39,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How much would be in the account after 8 months, assuming each month has 30 days? Select the correct answer. O a. $40,389.07 O b. $40,375.67 O c. $40,402.47 d. $40,368.97 Oe. $40,382.37
Alex would like to purchase a new car for $15,000. How much will his monthly payments be if he took out a 3-year loan at 7% interest? $436.16 $463.16 $466.13 O $406.63
"Paul wants to accumulate P150,000 in order to make the down payment for a new car. He plans to invest P25,000 every start of the year, how would it take him to have enough money to make the down payment if the interest rate is 8%?" 23.28 years 5.09 years 4.78 years answer not given

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