Suppose you want to have $7,876 for a vacation in the future. What will be the estimated total you will need if you add in 3% each year for 4 years for inflation? how much will you need to deposit monthly in order to save up the total cost of the vacation (inflation included into that), if you find a bank that offers 1.25% interest rate compounded monthly and you want to have the total in 4 years. How much interest is earned from that?

Q: If you put 1,000 in a savings account that yields an 7℅ annual rate of interest that is compounded…

A: Given: Present value = 1,000 Interest rate = 7% Periods = 25 weeks

Q: You took out a loan to buy a new car. The monthly interest rate on the loan is 0.6%. You have to pay…

A: Future value refers to the compounding the future cash flows with the interest rate compounding for…

Q: You're thinking about borrowing a $2000 personal loan. The interest rate on the loan is 10% with…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: suppose that you would like to save $20,000 over 5 years to use as a down payment for a house by…

A: Computation of monthly deposit:Hence, the monthly deposit into the account is $301.66 per month.

Q: Suppose you wish to start up your coffee shop.  You need to borrow $50,000 today.  You intend to pay…

A: Using PMT function of the excel to calculate monthly withdrawals

Q: year, to make a down payment of $75,752 on a vacation home If you can earn 3.03 percent on your…

A: The future value idea is a useful tool for investors to compare various investment prospects.…

Q: If you deposit OMR 8415 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: Future value is the value of current asset or investment at a future date. Future value is…

Q: what is the largest down payment you can make at the end of three years (immediately after the last…

A: Value at the end of saving period comprises of monthly saving and interest on those savings.…

Q: In order to be able to buy the new machine, you take a loan of 2 million from the bank, which you…

A: Amortized loan: An amortized loan is a case of the present value of an ordinary annuity.The PV of an…

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: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5%  The time duration of the loan = 30 years

Q: How much would you need to deposit in the account each month?

A: Information Provided: Future value = $410,500 Years = 15 Interest rate = 6.5% Deposits frequency =…

Q: Suppose that you want to avoid paying interest and decide you'll only buy the furniture when you…

A: Annuity refers to the contract that is made between the insurer and the insurance company for making…

Q: You would like to have $800,000 when you retire in 30 years. How much should you invest each quarter…

A: Amount required (FV) = $800,000 Quarterly interest rate (r) = 0.005 (i.e. 0.02 / 4) Number of…

Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

A: A loan is a sum of money obtained from outside sources such as banks and repaid over time in fixed…

Q: How much should you deposit at the end of each month into an investment account that pays 8.5%…

A: Retirement income is the money one receives after they stop working, either through savings,…

Q: You took out a loan to buy a new car. The monthly interest rate on the loan is 1%. You have to pay…

A: A= $220 R= 1% N= 60

Q: For the next two questions, assume the interest rate is 6% compounded annually. Use the online…

A: Present value refers to the current value of the future cash flow. Present value can be determined…

Q: You took out a student loan in college and now have to pay $1,900 every year for 20 years, starting…

A: Present Value is the value of all future cash flows discounted at a given rate of interest for the…

Q: Suppose you invest $200 a month for 6 years into an account earning 8% compounded monthly. After 6…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

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 take out a 30 year mortgage for $ 150000 at 6.75% interest. The monthly payments on this…

A: Time period with new monthly payments will be calculated by excel function NPER. Total interest on…

Q: Suppose you have decided to put $2000 in a savings account that credits interest at the annual rate…

A: Solution: An amount invested earns interest over it. So, we have, FV = PV (1+i)t where, FV = Future…

Q: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 900000 in a…

A: APR: The annual interest rate that is charged to the borrowers is known as the annual percentage…

Q: You took out a loan to buy a new car. The monthly interest rate on the loan is 1%. You have to pay…

A: An Annuity Due is a stream of regular periodic payments made at a beginning of period for a…

Q: ave selected a new car to purchase for $19,500. If the car can be financed over a period of 4 years…

A: The given problem can be solved using PMT function in excel. PMT function computes instalment amount…

Q: You want to buy a new car. You can afford payments of $425 per month and can borrow the money at an…

A: The objective of this question is to find out the total amount that can be borrowed given the…

Q: Suppose someone needs dollars 8969 in his account 5 years from now and the required rate of return…

A: Amount - 8969 Time - 5 years Rate of return - 0.1 per year compounded continuously

Q: pose that after the 6-month grace period after you graduate college, you have $63,0 dent loan debt.…

A: As there is more compounding than there is going to be more effective interest rate and more is the…

Q: Do you want to buy a new car. You can afford payments of 200 times per month and can borrow the…

A: Given Information: Monthly payments is $200 Annual interest rate is 4.9% (compounded monthly) Number…

Q: Suppose you take out a 30 year mortgage for $ 150000 at 4% interest. The monthly payments on this…

A: Here, Mortgage Amount is $150,000 Time Period of Mortgage is 30 years Interest Rate is 4% Monthly…

Q: You plan to start saving now for a downpayment for a house in your RRSP. You deposit $750 every…

A: Future value is an estimated value of future cash flows ​​that may be received at a future date,…

Q: How much would you have if the account paid 4.25%?

A: We can determine the FV using the FV of annuity due formula as below:In the formula above PMT =…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: You are borrowing money to buy a car. If you can make payments of $280 per month starting one month…

A: Present value is the current value of future cash flows. It can be calculated by discounting the…

Q: Suppose you found a CD that pays 2.9% interest compounded monthly for 5 years. If you deposit…

A: 1) FV = PV * (1 + r / m)m*n FV = future value PV = present value = $12,000 r = rate of interest =…

Q: You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how…

A: Dear student we need to use excel for calculation of monthly deposit(PMT) by using PMT functions.

Q: You will need $46000 for a down payment on a house in 9 years. How much should you deposit in a…

A: Present value refers to the  current worth of the amount that is expected to be received in future…

Q: You want to save P85,000 for future family vacation (three years from now). If the bank pays 8.5%…

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

Q: Suppose you want to borrow $20,000 for a new car. You can borrow 8% per year, compounded 8 monthly…

A: A monthly payment on a loan is a fixed amount of money that a borrower is required to repay to the…