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?
Todd can afford to pay $360 per month for the next 7 years in order to purchase a new car. The interest rate is 6.2percent compounded monthly. What is the most he can afford to pay for a new car today?Multiple ChoiceA. $24,482.10B. $24,248.59 C. $25,298.17D. $23,257.99E. $37,743.93
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?
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?
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.
Patricia finances a $49,100 car with annual payments at a 3.10% interest rate over 8 years, at which time the car will have zero value. If she wants to sell the car in 2 years, how much does she need to sell the car for to break even? a.$6,955 b.$42,145 c.$5,655 d.$51,838 e.$37,925
Scott wants to accumulate $2,500 over a period of 7 years so that a cash payment can be made for roof maintenance on his summer cottage. To have this amount when it is needed, he will make annual deposits at theend of each year into a savings account that earns 8% annual interest per year. How much must each annual deposit be? a. $244 b. $259 c. $280 d. $357.
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
aa.1
Can you solve this accounting question?
Suppose James will have $25,000.00 for a down payment on a house in 6 years. How much would he have to invest today (present value) if his investment earns a nominal rate of 5 ¼ % compounded monthly? b. How much interest did James’s account earn during the 6 years?
Q4. You are saving for a new house and you put $10,000 per year in an account paying 8%. The first payment is made today. How much will you have at the end of 3 years? A) S66.326 B) S65.593 C) $63.452 D) S63.359

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