Suppose you start saving today for a $50,000 down payment that you plan to make on a house in 5 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you have to depósit now to reach your $50,000 goal in 5 years. An account with daily compounding and an APR of 6% ... You should invest $ (Do not round until the final answer. Then round to two decimal places as needed.)

Q: You plan to make a total of 7 deposits of $11,000 each year with the first payment being made one…

A: Future Value of Annuity = Future Value = P x (1+i)n

Q: You are saving for a new house. You place $47,000 into an investment account at the end of each year…

A: Future value of annuity payment is the value of recurring payments at a future date considering a…

Q: ou decide to make monthly deposits of $300.00 for 15 years into an account which pays 5% compounded…

A: 1.Future value of annuityFV = A * whereFV = future value of annuityA = periodic depositsr = interest…

Q: Consider a credit card with a balance of $7000 and an APR of 12.5%. If you want to make monthly…

A: The objective of this question is to calculate the total amount paid over 11 years to clear a credit…

Q: Suppose you have $60,000 in a savings account earning 2%. You would like to make equal quarterly…

A: The time value of money is a concept in finance that evaluates the worth of the securities that cash…

Q: Suppose you lend ​$11,500 to a friend at an APR of 10.00​%. Your friend will pay you back beginning…

A: The periodic payment can be made monthly, quarterly, semi-annually or annually. Periodic payment is…

Q: You deposit $320 each month into an account earning 2% interest compounded monthly. Use the TVM…

A: Future value is the value of current asset at a particular date in the future when it has earned…

Q: 1. You want to start saving for retirement. In a savings account, you deposit $100 at the end of…

A: We need to use RATE function in excel to calculate interest rate on loan. The equation is:…

Q: How much will you have after 5 years? How much will you have after 5 years if you make the deposits…

A: Each year Deposit RM 2500 Interest Rate 4%

Q: the amount you need to save each month

A: given   fv=25000 n= 5*12=60 interest i = 3.5% PMT =?

Q: You are saving for a new car. You place $15,400 into an investment account today. How much will you…

A: Present Value (PV) of amount invested = $15,400Interest rate (r) = 2%, 4%, 6% or 0.02, 0.04,…

Q: . Suppose you have a bank account into which you make $100 deposits each month. You find a bank…

A: Periodic Payment = $100 Future Value = $2,000 Time Period = 15 Months

Q: How much must you deposit into an account today so that you can have $25,000 in twelve years? Assume…

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: How much would you need to deposit in an account now in order to have $2000 in the account in 10…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: You want to be able to withdraw $8500 from an account at the end of each 6-month period (that is,…

A: Given that;Periodic withdrawal amount is $8500Interest rate is 2.9% per year

Q: suppose you start saving today for a 40000 down payment that you plan to make on a house in 8 years.…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

Q: Suppose you plan to start a saving account. You plan to deposit $98 each month in to a money market…

A: Compound = Monthly = 12Payment = p = $98Interest Rate = r = 6 / 12 = 0.5%Future Value = fv = $2000

Q: How much money would you have to deposit today in order to have $5,000 in three years if the…

A: Present Value = Future Value / ( 1 + discount rate )years

Q: Suppose you invest $120 a month for 8 years into an account earning 10 % compounded monthly. After 8…

A: Compound = monthly = 12monthly Payment = p = $120Interest Rate = r = 10 / 12%Number of Payment = n =…

Q: Your goal is to have $12,500 in your bank account by the end of eight years. If the interest rate…

A: Future Value = fv = $12,500Time = t = 8 YearsInterest Rate = r = 8%Annual Deposit type = at the end

Q: Suppose you have saved $216 each month for the last 7 years to make a down payment on a house. The…

A: The objective of the question is to calculate the total amount in the savings account after 7 years…

Q: Use Excel to answer this question: You want to borrow money from your bank to purchase a car. The…

A: Amount you can borrow = Present value of the maximum monthly paymentsNOTE :here the monthly payment…

Q: You want to purchase a new car in 6 years and expect the car to cost $84,000. Your bank offers a…

A: A monthly deposit refers to an amount deposited every month for the accumulation of money at the end…

Q: You have a balance of $5,000 on your credit card.  The interest rate is 15% per year.  You want to…

A: Balance in credit card = $5,000 Interest Rate(r) = 15%/12= 1.25% per month Years = 4 Terms(n) = 4*12…

Q: Suppose you start saving today for a $30,000 down payment that you plan to make on a house in 7…

A: Down payment = $30,000Number of years = 7APR = 8%To find: Amount of deposit made in the account…

Q: You plan to spend $400 to buy a new IPAD at the beginning of year3 and $1,000 to buy a new phone at…

A: The objective of this question is to calculate the amount of money that needs to be saved each year…

Q: You are saving for a new house. You place $40,000 into an investment account each year for five…

A: Future value refers to the monetary worth of an investment or cash flow at a future date, assuming…

Q: Time value. You can deposit $12,000 into an account paying 6% annual interest either today or…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: You want to be able to withdraw $5000 from an account at the end of each year for the next 12 years.…

A: Information Provided: Payment = $5000 Term = 12 years Interest rate = 5.5% compounded annually