You plan to buy a house in three years and would like to put $100,000 down at the time of buying. You would like to save the money today so that you will have $100,000 in three years. Your savings account offers 6% APR, compounded monthly. How much money do you need to deposit in your savings account now in order to have $100,000 in three years, without making any other deposits? if you decide to make monthly deposits in the savings account at the end of each month for the next three years; instead of making one single deposit now, what will your monthly deposits be in order for you to have $100,000 at the end

You plan to buy a house in three years and would like to put $100,000 down at the time of buying. You would like to save the money today so that you will have $100,000 in three years. Your savings account offers 6% APR, compounded monthly. How much money do you need to deposit in your savings account now in order to have $100,000 in three years, without making any other deposits? if you decide to make monthly deposits in the savings account at the end of each month for the next three years; instead of making one single deposit now, what will your monthly deposits be in order for you to have $100,000 at the end

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
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You plan to buy a house in three years and would like to put $100,000 down at the time of buying. You would like to save the money today so that you will have $100,000 in three years. Your savings account offers 6% APR, compounded monthly. How much money do you need to deposit in your savings account now in order to have $100,000 in three years, without making any other deposits? if you decide to make monthly deposits in the savings account at the end of each month for the next three years; instead of making one single deposit now, what will your monthly deposits be in order for you to have $100,000 at the end of three years? Now, assume you currently have $80,000. Will you have enough money in three years if you invest all the money in this account, now, as a single deposit? If not, what should the APR of this savings account be for you to achieve $100,000 in three years, still assuming monthly compounding? ***PLEASE TYPE OUT ANSWER, DO NOT HAND WRITE IT.
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