Unfortunately it costs $25,000, it you want to the purchases the car in five years and in the meantime you can place money in a bank account that pays 10% interest per year, how much money do you need to put into your account today to be able to buy this car in five years?

Q: You can afford a $500.00 per month car payment. You can get a loan at 8% interest for 4 years. A.…

A: Loan: When money is lent to another party in return for regular repayment of the loan principal…

Q: Suppose that you are saving for college for a child. That child was just born and you will have to…

A: Here, Amount required to pay for the tuition for four years is $65,000 annually Time duration after…

Q: rs (60 months), and the nominal rate of interest will be 12 p st paid monthly. What would be the…

A: In this we need to calculate the present value factor monthly from that we can get monthly payment.

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: you are saving money to buy a car. if you save $290 per month starting one month from now at an…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Don Williams wants to buy a boat five years from today. He will need $40,000. Don wants you to…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: You are saving to buy a new car in two years.  You currently have $5000 in an account that pays 4%…

A: We need to use present value formula below to calculate amount required today in account.PV…

Q: You would like to purchase a new car in the side that you can afford monthly payments of $400 how…

A: The monthly payment is :The aim is to find the initial loan amount

Q: You are planning on buying a new vehicle in 5 years after you receive your PhD. You plan on…

A: You will buy the car after 5 years.The car costs = $35,600henceYou need $35,600 after 5 years.You…

Q: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: You are considering the purchase of a new car. You can afford a payment of $400 per month. You plan…

A: In the given problem we are considering to buy a new car and we want to know how much money we can…

Q: You are trying to save up for a downpayment on a home and you need $55, 000 to cover closing costs…

A: Future value=$55000Monthly payment=$975 Interest rate=7.65%Monthly rate=7.65/12= 0.6375Future value=…

Q: You want to save up enough money to purchase a new computer, which costs $4,500. You currently have…

A: Here, Required Amount (FV) is $4,500 Current Amount in Account (PV) is $4,000 Interest Rate is 8%

Q: After graduating from college and securing your first job in your field of study, you need to…

A: Car price = $92,500Down payment = 2%The amount of loan is

Q: You want to purchase a new car in 6 years and expect the car to cost $37,000. Your bank offers a…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: You plan to graduate in 4 years, and then travel to Italy for 3 weeks. The trip will cost $ 1,600.…

A: PV function in Excel returns the present value of an annuity.Syntax: =PV(rate, nper, pmt, fv)

Q: You need $30000 in cash to buy a car 15 years from today. You expect to earn 14 percent, compounded…

A: Future value is important to both investors and financial planners because it helps them to predict…

Q: You buy a car with a down payment of $1000 and $200 per month for 3 years. a) If the interest rate…

A: Loan amount is the present value of monthly payment based on time value of money and intrest rate of…

Q: You need $12,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an…

A: Annual loan payment is the amount of loan repayment which are scheduled at regular interval of time…

Q: You want to buy a $248,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Loan: It represents the amount borrowed by the borrower for the purpose of purchasing assets like…

Q: You need to have $25000 for a down payment on a house in 5 years. If you can earn an annual interest…

A: Concept is of present value. Present value is the current value of a future cash flow at a specified…

Q: You decide to begin saving towards the purchase of a new car in 5 years. If you put $1,000 at the…

A: The future value of accumulated investments will be the value of investments in future after they…

Q: You are saving to buy a new car in two years.  You currently have $5000 in an account that pays 4%…

A: The FV of an investment refers to the combined worth of the cash flows of the investment at a…

Q: A car is priced 35000. The price is expected to rise by 3% a year.If your local bank offers 10%…

A: Solution:- When an amount is invested in a bank, it earns interest on it. With rise of inflation,…

Q: You want to buy a new car and have saved a down payment of $2000. The car that you want costs…

A: To solve the question, we first need to determine the amount for which the monthly payments has to…

Q: Suppose you want to save in order to purchase a new car. Take the APR to be 3.6%. If you deposit…

A: Future value of annuity The future value of annuity refers to the total value of the investment at…

Q: You want to be able to withdraw $35,000 each year for 25 years. Your account earns 5% interest. a)…

A:

Q: You want to be able to withdraw $50,000 each year for 25 years. Your account earns 9% interest. a)…

A: An annuity is a payment series that provides its holder with a periodic amount in exchange for a…

Q: In order to save for your child's college education, you want to save $300 every month for 15 years,…

A: Compound = Monthly = 12Payment = p = $300Time = t = 15 * 12 = 180Monthly Interest Rate = r = 0.4%

Q: You have decided to purchase a new car that costs $44,500. You need to make a 20% down payment, then…

A: Present value of annuity is computed as follows:-PV = A * wherePV = Present value of annuityA =…

Q: You are saving to buy a new car in two years.  You currently have $5000 in an account that pays 4%…

A: Future value refers to the accumulated amount in the fund account by compounding of the amount at…

Q: My daughter wants to buy a new car. Here are the parameters. The car cost $12,000 with terms of 5%…

A: While taking a loan for any purpose one should evaluate the payment schedule where the requirement…

Q: you want to buy a car and a local bank will lend you 15000. the loan will be fully amortized over 5…

A: Compound = n = Monthly = 12Present Value = pv = 15,000Time = t = 5 * 12 = 60Interest Rate = r = 10 /…

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 saving money to buy a car.  If you save $310 per month starting one month from now at an…

A: Interest rate is 6% Monthly saving is $310 Time Period is 4 years

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Future Value :— It is the value of present cash flow in future.    Future Value = Present Value ×…

Q: Suppose you want to buy a car right now. Your credit is pretty good so you can get an 4% I interest…

A: Monthly payment (C) = $300Monthly interest rate (r) = 0.00333333333333333 (i.e. 0.04 / 12)Number of…

Q: You expect to save $450 at the end of each month for the next four years towards a car. Your parents…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…