You plan to save money for a down payment of $42,000 to purchase an apartment. You can only afford to save $6,000 at the end of every 6 months into an account that earns interest at 5.50% compounded monthly. How long will it take you to save the planned amount? years months Express the answers in years and months, rounded to the next payment period

Q: After selling a bunch of old "junk" on e-bay, you have $500. You deposit the money into an account…

A: The annual percentage rate incorporates all the fees, charges, interest, rewards, and payments that…

Q: How much would you need to deposit in an account each month in order to have $20,000 in the account…

A: The amount you need to deposit in an account each month in order to have $20,000 in the account in 7…

Q: You loan a friend $200 and are repaid $30 at the end of each month for the first 3 months and $120…

A: Rate of return = ( amount received at the end - amount invested) ÷ amount invested.

Q: ou decide to make monthly deposits of $300.00 for 15 years into an account which pays 5% compounded…

A: 1.Future value of annuityFV = A * whereFV = future value of annuityA = periodic depositsr = interest…

Q: ou save $100 at the beginning of every month for seven years, for how long can you withdraw $340 at…

A: In compounding there is interest on interest including the principal amount and hence the effective…

Q: You decide to make annual deposits of $300.00 for 12 years into an account which pays 5% compounded…

A: Annual deposits = $300 Time duration = 12 years Interest Rate = 5%  The future value of the annuity…

Q: You want to retire 32 years from today and buy a beach house in Costa Rica. Today, those houses sell…

A: Future value of money is the amount of deposit done and amount of compounded interest accumulated…

Q: Six years from today you need $10,000. You plan to deposit $1,600 annually, with the first payment…

A: Future value=$10000Annual deposit=$1600Interest rate=7%Calculate last deposit.

Q: Jon plans to start a saving account. His plan is to deposit $69 each month into a money market…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You decide to make regular deposits every 2 weeks into an account that earns 5% annual interest,…

A: The future value of the deposits is $29,000. The annual interest rate is 5%. The maturity period is…

Q: Suppose you start saving today for a $50,000 down payment that you plan to make on a house in 5…

A: Down payment = $50,000Interest rate = 6% (Daily compounding)Number of years = 5 years

Q: If you deposit $300 at the end of every month in a savings account that pays a nominal APR of 5% per…

A: Compounding refers to phenomenon of calculating interest where interest is added to the principal…

Q: Six years from today you need $10,000. You plan to deposit $1,400 annually, with the first payment…

A: Future value represents the future worth of present cash flows. It is calculated by compounding the…

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: son.3

A: The objective of this question is to find out how long it will take to save $39,000 by depositing…

Q: ou could save $12,000 per year ($1,000 per month) for 20 years towards your retirement and you could…

A: Future value of money is the amount of deposit made and amount of compounded interest accumulated…

Q: Your bank account pays an interest rate of 6 percent, but this interest is compounded daily (use…

A: Interest rate on account = 6% (compounded daily) Amount A = P(1 + r/n)nt Where A = amount P =…

Q: You have $20,800.51 in a brokerage account, and you plan to deposit an additional $3,000 at the end…

A: The number of years required to accomplish the goal can be find out by using the future value of…

Q: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6.…

A: Answer: Calculation of the amount that will be available to withdraw at the end of year 15: The…

Q: You have just taken out a $16,000 car loan with a 8% APR, compounded monthly. The loan is for five…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: How long will it take to save $2581.00 by making deposits of $227.00 at the end of every month into…

A: Amount to be saved is $2581.00 Interest rate is 7% compounded monthly Monthly deposit $227 To Find:…

Q: You will deposit $202 each of the next four years (the first deposit will occur one year from today,…

A: 92 COMPOUNDED ANNUALLY ROUNDED 2 DECIMAL 93 F G   94 INTEREST RATE 7.50%   95 NPER (n)  4…

Q: To save up for your dream business, you committed to deposit P2,000, starting today, every month in…

A: Present value (PV)= P2,000 Interest rate (r)= 6% Number of period (n)= 5 Future value (FV)

Q: You decide to save $7700 by making monthly deposits for 9 years into an account which pays 7%…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: ssume that you have a balance of $4600 on your Discover credit card and that you make no more…

A: Credit cards are financial instruments that allow users to borrow funds up to a predetermined limit…

Q: deposit $1,000 in an account that earns an APR of 5% compounded once per year a) How long will it…

A: Future value of the amount includes the amount of deposit done and amount of compounded interest…

Q: sume that you can buy a $6,800 computer system in monthly installments for 4 years. The seller…

A: The assets are bought on the loan and these loans are paid by the monthly installments and these…

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 want to save for a new car so you make payments of $573 at the end of every month into the bank.…

A: Monthly Payment = mp = $573Annual Payment = ap = $1620Number of Monthly Payment = mn = 7 * 12 =…

Q: Six years from today you need $10,000. You plan to deposit $1,500 annually, with the first payment…

A: Future value refers to the value of an asset or investment at a future date, considering the rate of…

Q: You plan to save money for a down payment of $39,000 to purchase an apartment. You can only afford…

A: Time, the value of money refers to the concept which is used for calculating the present value of an…

Q: You are planning to save to purchase a car in 23 years for $28,000. You have opened a bank account…

A: Annuity is a series of equal payments made for some particular period of time . When payment is made…

Q: Use the following information to answer the next three questions below: You buy a house on July 1.…

A: Laon amortization schedule means where repayment during the life of loan is written with interest.

Q: You can afford monthly deposits of $170 into an account that pays 3.0% compounded monthly. How long…

A: The FV of an investment refers to the value of the cash flows at a certain future date assuming that…

Q: You decide to save $6800 by making semiannual deposits for 5 years into an account which pays 3%…

A: Compound = Semiannually = 2Future Value after 10 years = fv $6800Number of Deposit = n = 5 * 2 =…

Q: You decide to quit using your credit card and want to pay off the balance of $9,500 in 4 years. Your…

A: The periodic payment is the payment made at regular intervals that have the same amount. The…