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
Pretend that you are saving up for a down payment on a car or house. Pretend that we get an inheritance of $4,000 so we put the inheritance in a special bank account that pays 4.00% APR compounded quarterly for four-years. We also decide to save $400 a quarter into this savings account to help grow our down payment. a. How much money do we have in our savings account at the end of all these years? b. How much interest do we earn in total?
Pretend that you are saving up for a down payment on a car or house. Pretend that we get an inheritance of $4,000 so we put the inheritance in a special bank account that pays 4.00% APR compounded quarterly for four-years. We also decide to save $400 a quarter into this savings account to help grow our down payment. a. How much money do we have in our savings account at the end of all these years? b. How much interest do we earn in total?
Your father is about to retire, and he wants to buy an annuity that will provide him with $52,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 5.95%. How much would it cost him to buy the annuity today? a. $707,644.77 b. $873,949.58 c. $679,475.65 d. $719,904.45 e. $667,904.45
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%
Please answer question 13 first and then 12 and 11. Thank you
PLS ANSWER THIS QUESTION ASAP WILL RATE YOU!
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.
Bha
You just inherited some money, and you decide to put $70,000 in an account that pays 3.25% interest, which you will use to establish an annuity that will pay for your vacations for the next ten years. How much can you withdraw from the account in each of the ten years? $8,044.56 $7,826.10 $6,241.51 $8,311.18
aa.1

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