suppose you are planning to buy a home in 8 years from now that costs you 55980 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: O a. 4338.96 O b. 554297.17 O c. None of the options O d. 5653.57 O e. 5134.98

suppose you are planning to buy a home in 8 years from now that costs you 55980 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: O a. 4338.96 O b. 554297.17 O c. None of the options O d. 5653.57 O e. 5134.98

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

See similar textbooks

Related questions

Q: Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of…

A: Present value refers to the current value of a future sum of money, taking into account a specified…

Q: st inherited some money, and a broker offers to sell you an annuity that pays $16,800 at the end of…

A: Value of annuity is present value of all year end money received over the period of life.

Q: Your insurance agent is trying to sell you an annuity that costs $80,000 today. By buying this…

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: suppose you are planning to buy a home in 8 years from now that costs you 48854 OMR, How much…

A: Annual payments or saving refers to the periodic payment that can be made towards repayment of a…

Q: suppose you are planning to buy a home in 8 years from now that costs you 59933 OMR, How much should…

A: An investment is a financial term that represents a fund or a series of funds invested to accumulate…

Q: A new investment opportunity for you is an annuity that pays $1,100 at the beginning of each year…

A: The maximum amount to be paid for annuity can be calculated by discounting future cash inflows at…

Q: If you deposit OMR 5000 in your account in a bank; if your bank pays 9.05% interest, how much will…

A: future value = present value *(1+rate)^n future value = 5000 * 1.090515

Q: A new investment opportunity for you is an annuity that pays $650 at the beginning of each year for…

A: An annuity is a financial product that provides a series of regular payments to an individual over a…

Q: Suppose you deposited $39,000 in a bank account that pays 5.25% WI daily compounding based on a…

A: Future value is the amount initially deposited and amount of comounding interest accumulated over…

Q: Your friend offers to pay you an annuity of $6,800 at the end of each year for 3 years in return for…

A: Present value of Annuity = Annuity ×1-(1+r)-nrwhere,r=interest raten=number of periods

Q: The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you…

A: Payment = p = $36,000Required Rate of Return = r = 5.8%Time = Forever

Q: Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10…

A: Period (n) = 10 Years Annual cash flow (C) = $25,000 Required return (r) = 0.07 Present value = ?…

Q: Your friend offers to pay you an annuity of $7,700 at the end of each year for 3 years in return for…

A: Cash flow, C = $7700 No. of periods, n = 3 rate of interest, i = 5.5%

Q: What is the most you would be willing to pay for an annuity that provides you with $13,700 at the…

A: Here,Annuity Received (PMT) is $13,700Interest Rate (r) is 5.5%Time Period (n) is 3 years

Q: You purchase an annuity that will pay you $100 every three months for five years. The first $100…

A: FORMULA FOR PRESENT VALUE OF ANNUITY (FVA): PVA=A×1-1+rmm×nrm×1+rm where, A=annuity r=rate…

Q: 6. You invest P 5 000 today at an interest rate of 10% for four years, how much would be the future…

A: 6) Present value (P) = P 5000 r = 10% n = 4 years

Q: Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first…

A: An annuity refers to a series of cash flows occurring at regular intervals. Here the cash flow…

Q: Your insurance agent is trying to sell you an annuity that costs $55,000 today. By buying this…

A: Compound = Monthly = 12Present Value of Payment = $55,000Monthly Payment = $285Number of Payment =…

Q: (Solving for i) An insurance agent just offered you a new insurance product that will provide you…

A: It is a problem that requires calculating the interest rate earned on the investment. The interest…

Q: Your friend offers to pay you an annuity of $8,100 at the end of each year for 3 years in return for…

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

Q: You have of $1,000,000 to invest. There are two different investment options for you. First option:…

A: Solution- Simple interest for 2 years=2*1.21i =2.42iCompound…

Q: What will be the value of your saving in 4 years with an interest rate of 10% if you invest $120…

A: Using excel FV function

Q: Assume that you own an annuity that will pay you $14,000 per year for 12 years, with the first…

A: The objective of this question is to find out the rate of return that the uncle would earn on his…

Q: If you deposit OMR 19500 in your account in a bank; suppose the bank pays 16.15% compound interest…

A: Present value is OMR 19500. This amount earns interest at 16.15% interest rate that compounds…

Q: Suppose you are 20 years old today and want to have OMR 500000 saved by the time you reach 30 years.…

A: Discounting is a way to find the PV of future amount by using appropriate rate or PVF. It shows the…

Q: Suppose you are 20 years old today and want to have OMR 500000 saved by the time you reach 30 years.…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: How much would you be willing to spend for an annuity that pays $2,500 at the end of each year for…

A: Present value = Future value * PV factor

Q: Question 3 You are considering to invest in a savings plan. The plan offers a rate of return of 8…

A: Interest rate (r) = 8% Saving in year 1 (S1) = RM 1500 S2 = RM 1250 S3 = 6400

Q: Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first…

A: Rate of return refers to the minimum return that is earned by the investors over the investment…

Q: You would like to retire in 50 years, as a millionaire. If you have $20 000 today what rate of…

A: Retirement Time = 50 years Present Value of money = $20,000 Future Value of money = $1,000,000

Q: You would like to retire in 50 years, as a millionaire. If you have $20 000 today what rate of…

A: We need to calculate the rate of return needed on $20,000 investment to make it $1,000,000…

Q: suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should…

A: Here, Future Value of home is OMR 47114 Time Period is 8 years Interest Rate is 6.012%

Q: You have a chance to buy an annuity that pays $25,000 at the beginning of each year for 10 years.…

A: Here the payments are being made at the beginning of each year. Hence this is the case of an annuity…

Q: If you deposit OMR 19500 in your account in a bank; suppose the bank pays 6.15% compound interest…

A: Deposit amount = OMR 19500 Annual interest rate = 6.15% Period = 15 Years

Question

suppose you are planning to buy a home in 8 years
from now that costs you 55980 OMR,
How much should you save each year in your bank
account that pays 6.012 percent to reach your goal?
Select one:
O a. 4338.96
O b. 554297.17
O c. None of the options
O d. 5653.57
O e. 5134.98

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: O a. 4758.17 Ob. 4321.71 Oc. 466508.69 Od. None of the options O e. 3651.77
suppose you are planning to buy a home in 8 years from now that costs you 59933 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: a. 4645.36 b. None of the options c. 593438.59 d. 5497.58 e. 6052.80
If you deposit OMR 5000 in your account in a bank; if your bank pays 9.05% interest, how much will you get in 15 years? Find future value Select one: a. None of the option b. 18212.41 c. 18833.31 d. 18212.14 e. 18338.13
answer The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $36,000 per year forever. If the required return on this investment is 5.8 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) present value is?
You have a chance to buy an annuity that pays $25,000 at the beginning of each year for 10 years. You could earn 8.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $346,484.41 O $177,976.57 O $164,033.70
Suppose you deposited $39,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How much would be in the account after 8 months, assuming each month has 30 days? Select the correct answer. O a. $40,389.07 O b. $40,375.67 O c. $40,402.47 d. $40,368.97 Oe. $40,382.37
Your insurance agent is trying to sell you an annuity that costs $55,000 today. By buying this annuity, your agent promises that you receive payments of $285 per month for 30 years. What is the rate of return expressed as an APR on this investment? Multiple Choice O 3.91% 4.33% will
By using formula please;;
You have of $1,000,000 to invest. There are two different investment options for you. First option: (1.21*i)% pays simple interest. Second option: pays i% compounding interest rate. What is the value of i that makes the both options pay the same money at the end of second year. Select one: a. 1.21 b. 42 c. 21 d. 5.5 e. 10
am6 Tre Maybe Pay Life Insurance Co.ts trying to sell you an investment policy that will pay you and your heirs $21000 per year forever. if the required return on this Investment Is 53 percent, how much will you poy for the policy? (Do not round Intermediate celculations dnd round your answer to 2 decintal pleces,e9.32.16.]
The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. If the required return on this investment is 5.6 percent, how much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
A new investment opportunity for you is an annuity that pays $650 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? Select the correct answer. a. $1,903.81 b. $1,885.91 c. $1,850.11 d. $1,832.21 e. $1,868.01