Suppose that you want to avoid paying interest and decide you'll only buy the furniture when you have the money to pay for it. An annuity is basically theopposite of a fixed-installment loan: you deposit a fixed amount each month and receive interest based on the total amount that's been saved. The future valueformula is:A =12M 1+The future value would be $Y12r12t-1where M is the regular monthly payment, is the annual interest rate in decimal form, and t is the term of the annuity in years. If you chose an annuity with aterm of two years at 4.4% and a monthly payment of $110, the future value would be $2754.37. Recalculate the future value amount if you're willing to raiseyour monthly payment $20 per month. Round your answer to the nearest cent.S

Future value:Future Value (FV) Formula is a financial terminology used to calculate the value of…

Answered: Suppose that you want to avoid paying…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Sove the problem. Ted owes $2000 to Mary. The loan is payable in 1 year at 10%. Mary needs cash, so 2 months before the loan is payable she goes to her bank which will pay her the maturity value of the note less at 14% discount fee. Find the amount Mary will receive.
A new investment opportunity for you is an annuity that pays $850 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
You want to go on a world holiday in 10 years time. You work out you need $80,000 for your holiday. So you start saving every month at the end of the month and you get 5% per year compound monthly interest. For the first 5 years you save $800 a month but things go wrong after 5 years and you can only save $200 a month. After 10 years has he saved enough money or does he need to get more money?
James has an investment worth $175,609.50. The investment will make a special payment of X to James in 1 month from today and the investment also will make regular, fixed monthly payments of $1,440.00 to James forever. The expected return for the investment is 1.23 percent per month and the first regular, fixed monthly payment of $1,440.00 will be made to James in one month from today. What is X, the amount of the special payment that will be made to James in 1 month? An amount less than $58,600.00 or an anmount greater than $179,600.00 An amount equal to or greater than $58,600.00 but less than $88,950.00 An amount equal to or greater than $88,950.00 but less than $146,400.00 An amount equal to or greater than $146,400.00 but less than $176,000.00 O An amount equal to or greater than $176,000.00 but less than $179,600.00 Com SHEMA
Suppose you owe $18,000 on a credit card that carries an APR of 24%. Because the balance is so high, you choose to stop charging and pay off the card. You can afford to make only the minimum monthly payment, which is 5% of the balance. Then your balance after t months is given by B = 18,000(1.02 ✕ 0.95)t dollars. How many payments will you have to make to get the balance below $100?
Fatzamatah is a simple person, so he only invests in simple interest accounts. At the end of 10 years he wants to have $50,000 in his bank account. He can get an annual interest rate of 5% from the bank for 10 years. How much money (Principal) must he put down (at t = 0) to accrue a future value of $50000 in 10 years? Calculate his net earnings (I) over the 10 years.
The monthly payment is $ enter your response here. (Round to the nearest cent as needed.)
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