Sousan wants to save money for her retirement.  She plans on putting $200 into an Annuity each month.  She found an annuity that earns 3.5% compounded monthly. How much will she have in 25 years? How much will she have deposited? How much interest will she have earned?

Q: Monica has decided that she wants to build enough retirement wealth that, if invested at 9 percent…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: amy just retired with savings of $8 million. If she expects to live for 43 years and to earn 9% a…

A: Present Value of Annuity Due refers to a concept which determines the value of cash flows at present…

Q: Your grandmother bought an annuity from Manulife Financial for $306,248 when she retired. In…

A: Step 1:Step 2:

Q: Gabby is planning to buy a home.  She has some money for a down payment already saved.  She sees a…

A: Monthly payment on the borrowing is calculated using following equation Monthly payment =…

Q: Joe wants to have $50,000 ten years from now to use for a down payment on a house. How much should…

A: Given: Future value = $50,000 Interest rate = 4.5% Years =10

Q: Vernon has nothing saved for retirement. He wants to receive $46,000 per year for 5 years during…

A:

Q: Molly would like to spend $55,000 (inflation adjusted, in today's dollars) each year in retirement…

A: The amount needed per year in retirement is given in the today's dollar term. The same need to be…

Q: Jamie wants to have $1,000,000 for her retirement in 25 years. How much should she save annually if…

A: Annuity refers to annual end of year deposits required to accumulate a certain sum of money in the…

Q: fter retiring, Sofía wants to be able to withdraw $8,500.00 every quarter from her account for 33…

A: There is need of proper planning for retirement and if you do that properly than you can achieve…

Q: expects to retire in 30 years. She has decided that she would like to retire with enough money in…

A: The present value of money to be received in the future would give the amount of retirement money…

Q: Destiny invests $20,000 today into a retirement account. She expects to earn 7 percent, compounded…

A: The FV of an investment refers to the value of the cash flows of the investment at a future date…

Q: Your grandparents have their life savings of $750,000 in a savings account that pays 6.7% interest…

A: Step 1 An inflow or outflow amount that happens at each period of a financial stream is known as a…

Q: 1) Sabrina waits to start saving for retirement until age 35. If she saves the same $8000 each year…

A: Annual saving (P) = $8000 Period from 35th year to 65th year (n) = 30 Interest rate (r) = 7.00%

Q: no retirement savings, and her investments will earn 6% annually. How much must she deposit into her…

A: The time value of money highlights the idea that money invested now will have a higher value than…

Q: Currently, Ally Gator has saved $15,000 in her retirement account. Ally plans on saving $6000…

A: Initial amount = $ 15000Annual deposit = $ 6000Number of years = 35Rate during working years=…

Q: Maria, a 25-year-old teacher, wants to start saving for her retirement. Maria wants a comfortable…

A: GIVEN, Age of Maria = 25  retirement age = 65 therefore number of years of savings = 65- 25 = 40…

Q: Rachel starts an IRA (Individual Retirement Account) at the age of 26 to save for retirement. She…

A: Compound interest is a financial concept that involves the addition of interest not just on the…

Q: This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving…

A: The annuity formula can be used to calculate present value of all withdrawals at the time of…

Q: Tina saved $679,000 for her retirement annuity. If she wants it to last her 30 years, earing 4.56%…

A: An annuity is a stream of equivalent periodic cash flows that occurs over a specific time duration.…

Q: Myrna is 50 years old now. She plans to retire at age 65. She wants to have half a million pesos at…

A: Future value of annuity is the recurring cashflow at regular interval compounded to future date at…

Q: Brenda Young desires to have $16,500 eight years from now for her daughter’s college fund. If she…

A: Data given: FV= $16500 n=8 years r=12% (compounded annually) Required: what amount should she…

Q: John and Denise are partners at a law firm. They have decided to set aside a fund for their loyal…

A: Compound = Monthly = 12Time = t = 10 * 12 = 120John Payment = jp = $100Interest Rate = r = 10 / 12 %

Q: ang Daiyu expects to retire in 30 years. She has decided that she would like to retire with enough…

A:

Q: my is now (year 0) 25 years old and planning for her retirement at age 65. She would like to have $2…

A: Real future value required=$1015041.55707 Inflation=2.82%Growth rate=2.82%Period =40 yearsNominal…

Q: As soon as she graduated from college, Kay began planning for her retirement. Her plans were to…

A: Retirement fund refers to the portion of the income which is saved by an individual for the purpose…

Q: Katy has decided she wants to put money aside for a $8000 downpayment on a house. She figures she…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You are saving for retirement. To live comfortably, you decide that you will need $2.5 million by…

A: Yearly deposit refers to an amount that is kept aside for the purpose of saving in any of the…

Q: Emily is trying to decide between investing $1,000 or $1,500 at the beginning of each year for the…

A: Future value of money is the amount of deposit done and the amount of compounded interest…

Q: our friend has just celebrated her 30th birthday and accepted her first job. She must now decide how…

A: Your friend is undertaking her retirement planning. She has crystallized the annuity required in her…

Q: Your friend Anne is planning to invest $700 each year for four years and will earn a rate of 6…

A: Given information, Annuity Amount = $700 Time Period = 4 years  Interest rate per year = 6%

Q: A 40-year-old woman decides to put funds into a retirement plan. She can save $1,000 a year and earn…

A: We need to calculate the persent value of annuity  by using this formula.    PV of annuity =CF*…

Q: Julie deposited some money in a savings account this morning. Her money will earn 5 percent…

A: Computation:

Q: Six years ago, Gladys opened a retirement account with an initial deposit of $14,000. Each year…

A: The present value refers to the current worth of a sum of money to be received in the future,…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,800 of…

A: Payment = p = $6800Time = t = 14 yearsInterest rate = r = 5.25%

Q: Ivanna wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 5.4%…

A: Solution:- When an equal amount is saved each period at end of period, it is called ordinary…

Q: After retiring, Valeria wants to be able to withdraw $36,500.00 every year from her account for 27…

A: Amount to withdraw every year "PMT"  is $36,500 Time period "N" is 27 years Interest rate "I/Y" is…

Q: Frances plans to save money for a down payment on a house using an investment account that pays an…

A: An annuity is a stream of cash flows occurring on a periodic basis. The amount is usually fixed in…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.