Suppose Chris is saving to finance a 3-year trip around the world. He plans make 4 equal annual savings payments starting today after 4 years he will keep the money in the same account at 5.2% until he needs it. He anticipates needing $45,000 a year for each of the 3 years of his trip which he will withdraw at the beginning of each year.  How much will he have to save each year if he leaves 7 years from today and the interest rate is 5.2%

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A: Time value of money :— It means that value of money in present days has more as compared from same…

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A: Solution:- When an amount is invested somewhere, it earns interest on it.  The amount initially…

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A: Each year Deposit RM 2500 Interest Rate 4%

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A: According to bartleby guidelines , if multiple questions are asked , then 1st question needs to be…

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: The future value (FV) of an annuity represents the total value of all cash flows from an annuity at…

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A: To calculate the investment amount we will use the below formula   Investment amount = F/(1+r/m)n*m…

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A: The present value is the value of the sum received at time 0. It is the current value of the sum…

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A: Note: Hi! Thank you for the question, As per the Honor code, we are allowed to answer one question…

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A: solution given Annual deposit 2500 Interest rate 4% Number of years 5 years…

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A: Here; We have Savings of $8million Expected life is 34 years Interest rate is 14% To Find: Yearly…

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A: in this problem we have to calculate quarterly interest rate and from that we can get present value.

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A: Here, The monthly rate of interest is 'r' Number of months is 'n'

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A: GIVEN, pv = $300,000 A= $25,000 r=4%

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Q: What rate will meet his desire to buy the car?

A: Information Provided: Term = 10 years Monthly Deposit = 6000 Future value = 756,000

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A: The amount at the end of maturity can be found using the formula, Here P is the principal; r is the…

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A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Phil graduates in 3.5 years and wants to buy a new car then. How much should he save now to have…

A: Present Value (PV) refers to the current value of a future sum of money, discounted at a specific…

Q: ts to buy a shopping complex in Vancouver 3 years after completing his Masters. The complex will…

A: The present value or today value will decrease with increase in period but will increase with…

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A: Annual payment refers to an amount that is paid every year for the accumulation of money for the…

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A: Amount to be Invested Today = Annual Expenses  X Present value of annuity of $ 1 at 6% for 3 years