Answered: y have just planned to put aside…

y have just planned to put aside RM9,872.43 now for this purpose. (a) What is the interest rate per year that they will gain from the sum put aside? Knowing this, however, Farid has asked th

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

See similar textbooks

Similar questions

Hashim wants to invest an amount of OMR. 9500 every year to buy a house at the end of 12 years. For this purpose, he wants to invest some money in a saving bank but does not know the exact amount of money he will get after 12 years a) What amount will he receive assuming an interest rate of 3.005%? b) What amount will he receive assuming an interest rate of 6.50%? c) Suggest the option which will be enough to meet his house which is estimated to be OMR. 100000?
Jannah is planning to visit her friends in London in three-year time from now. She needs a total of RM30,000 for that purpose. She has deposited RM12,000 in her savings account which pays 4% interest annually. Her parents promised to finance the balance by putting a sum of money in an investment earning 15% annually. How much do you think her parents must deposit now in order for her to have a total of RM30,000 at the end of year three?
Allan plan to go to London to visit friends in three years. The trip is expected to cost a total of RM10,000 at that time. His parents have deposited RM5,000 for him in a Certificate of Deposit paying 6% interest annually, maturing three years from now. His uncle has agreed to pay for all remaining expenses. If he is going to put his uncle’s gift in an investment earning 10% over the next three years, how much must he deposit today, so he can visit his friends three years from today.
Bill O’Brien would like to take his wife, Mary, on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $20,000 inheritance from an uncle and intends to invest it for the trip. Bill estimates the trip will cost $23,500 and he believes he can earn 5% interest, compounded annually, on his investment. Will he be able to pay for the trip with the accumulated investment amount?
Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he graduates in four years. If he can earn 8 percent return on investment semiannually, calculate the amount that he needs to deposit every year to have RM10,000 upon his graduation.
Fatema wants to invest an amount of OMR. 2000 every year to go on vacations with her husband at the end of 5 years. For this purpose, she wants to invest some money in a saving bank but does not know the exact amount of money she will get after 5 years a) What amount will she receive assuming an interest rate of 7.85%? b) What amount will she receive assuming an interest rate of 7.50%? c) Suggest the option which will be enough to meet her travel expenses estimated to be 12000
B) Samy would like to buy a house with cash ten (10) years from now. The house is currently selling at RM200,000, with an expected annual inflation rate of 3%. in the next five (5) years, he expects to receive a reimbursement of RM30,000 for overpaying his tuition fees. Samy can reinvest the reimbursement money at 6% per annum before he uses it to pay for the house down payment in year 10. For the balance sum, Samy plans to save a fixed amount of money annualiy for 10 years, earning an annual interest rate of 6%. How much money does Samy have to save on annual basis?
Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he graduates in four years. If he can earn 8% return on investment semiannually, calculate the amount that he needs to deposit every year to have RM10,000 upon his graduation.
Your sister will start college in five years. She has just informed your parentsthat she wants to go to a private university that will cost RM18,000.00 per yearfor four years (assumed at the end of each year). Your parents have startedinvesting RM3,000.00 per year since five years ago. How much will yourparents have to invest each year for the next five years to have the necessaryfunds for your sister's education? Use 10% interest rate throughout thisproblem.
Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he graduates in four years. If he can earn 8 percent return on investment semiannually, calculate the amount that he needs to deposit every year to have RM10,000 upon his graduation. (b) Hakimi borrow RM15,000 education loan from Maybank. Payments are being made in instalments at the end of each year. He borrows for 10 years at an interest rate 5 percent per annum. Calculate the amount that Hakimi has to payback for every year.
a) Ali is planning for his wedding with his fiancé Aliah. They believe they need RM30,000 for the ceremony to be held exactly three years from today. Aliah is planning to start depositing RM300 per month for the event beginning next month in a unit trust that would provide her 5% return per year on average. If Ali were to invest in another unit trust investment that will provide him 7% return per annum, how much should he invest every month beginning today to ensure that their savings will be enough in three years' time?
You are making plans for your retirement. You have just turned 30 and want to retire on your 65th birthday. Once retired, you plan to move to a tax-free Caribbean state, where you believe you can live comfortably on $10,000 per month. Your first payment of $10,000 will occur one month after you retire, and you will receive your last instalment from your retirement fund on your 85th birthday when you intend to move back to Canada and depend on your kids for support. Your current salary is $60,000 per year, or $5,000 per month. Your personal tax rate is approximately 25%. You estimate that you can earn an average return of 10% APR compounded monthly on any money you invest over the next 60 years. You will make your first deposit one month from now and your last deposit on your 65th birthday. To ensure that you are able to achieve your retirement objective, what percentage of your after-tax monthly. income must you save? Select one: a. 4.52% of after tax monthly income b. 5.46% of after…