Suppose you wish to start up your coffee shop.  You need to borrow $50,000 today.  You intend to pay back $50,000 in equal payments, every year for 25 years.  If the annual interest rate is 7%, how much do you need to pay the bank every year (annuities) for 25 years

Q: If you deposit $8,000 in a bank account that pays 7% interest annually, how much will be in your…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You want to be able to withdraw $50,000 each year for 30 years. Your account earns 10% interest. a)…

A: Check the detailed answer belowExplanation:Part 1: Answer:a) $393,905.65b) $1,500,000c)…

Q: If you deposit $9,000 in a bank account that pays 10% interest annually, how much will be in your…

A: Calculate the future value as follows: Future value = Amount * (1+ rate)^ years

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: you want to be able to withdraw $30000 each year for 25 years. your account earns 8% interest. How…

A: Given, Amount able to withdraw = $30,000 each year Time period = 25 years Interest rate = 8%

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 invest 10.000 dolar in a bank account to buy a house at annual interest rate 14 per year,…

A: Given: Investment = 10,000 Interest rate = 14% Years = 10

Q: You have $14,000 in the bank today.  How much would you need to save each year in order to…

A: Current amount (C) = $14000 Let the annual saving = A r = 10% n = 30 years Accumulated value = $3…

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 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: Today you are opening a savings account and depositing an initial $5,000 into it. You plan to…

A: Maturity Value is that amount which will be received at the end of certain period of time. It…

Q: You Save Bank has aunique account. If you deposit $9,000 today, the bank will pay you an annual…

A: FV = A*(1+r)nwhereFV = future valueA = amount investedr = interest raten =time period

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 want to buy a house. The loan amount will be $285,000.00. A bank is offering a 5% interest rate…

A: Monthly Payment: A borrower pays down portion of the remaining sum together with the interest on the…

Q: You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How…

A: Given, Amount withdrawn each year (P) = $20,000 Rate of interest (i) = 5%  or  0.05 Number of years…

Q: You are going to buy an apartment, and are borrowing 5 000 000 from a bank for 10 years. The…

A: EAR is the effective interest rate that is interest rate after considering impact of compounding on…

Q: Suppose you take out a car loan that requires you to pay $7,000 now, $4,000 at the end of year 1,…

A: Present value (PV) is a financial concept used in time value of money calculations. It represents…

Q: You have $1,000 today in your savings account. How long must you wait for your savings to be worth…

A:

Q: Assume that you just deposited $1000 into a savings account that earns an interest rate of3% per…

A: The future value of an investment can be very useful for investors as it helps them to estimate how…

Q: you need $8,000 four years from now for a down payment on your future house. How much money must you…

A: The formula for compound interest: Final amount (A)=Initial principal balance (P)×1+ratetime

Q: You have already $5,000 in your savings account today. You want to have $50,000 in your savings…

A: Data given: FV= $50,000 n= 10 years i= 5% p.a. Amount in savings account = $ 5000   Required: Amount…

Q: Your bank offers a savings account that pays 2.5% interest, compounded annually. If you invest…

A: Future value refers to the value of an investment or cash flow at a specified point in the future.…

Q: if you have $100 in a savings account and the interest rate is 10% per year and you never withdraw…

A: The time value of money is the concept that explains that the value of money is different in the…

Q: Suppose you want to withdraw $20,000 at the end of year 3 and another $20,000 at the end of year 5.…

A: given, The amount to be withdrawn is $20,000 in year 3 and $20,000 in year 5 Rate is 5%

Q: m today you will make the first of 20 equal annual deposits in a bank account. One year after the…

A: Number of deposits=n=20Annual withdrawal=$10000Number of withdrawal=15Interest rate=r=12%Required is…

Q: Suppose you want to save up for a down payment on a house in 5 years. You plan to save $1,000 per…

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

Q: If you open a savings account that earns 7.5% simple interest per year, what is the minimum number…

A: Simple interest rate is the interest rate that is fixed on a borrowed amount and is to be paid by…

Q: You want to be able to withdraw $25,000 each year for 20 years. Your account earns 10% interest.…

A: Part A-C:Calculation of Amount in the Account, Total Money in the Account and Total Interest:A) The…