You want to purchase a new car in 6 years and expect the car to cost $84,000. Your bank offers a plan with a guaranteed APR of 6.5%if you make regular monthly deposits. How much should you deposit each month to end up with $84,000 in 6 years?You should invest $ each month.(Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.)

A monthly deposit refers to an amount deposited every month for the accumulation of money at the end…

Answered: You want to purchase a new car in 6…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $5,000 payments. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent.
You would like to put some money into an account so that you will have $6000 in the account 13 years from now. If the account earns 3.5% interest per year, compounded quarterly, how much should you invest now in order to reach your goal? Give the answer correctly to 2 decimal places. dollars Do NOT use the dollar sign in the answer box. ns
Jill wants to make a few deposits so that she can withdraw $5000 per year at the end of each year for the next 15 years. A deposit of X is made a year from now, a second deposit of 2X is made at the end of year 4, and a deposit of (X/2) is made at the end of year (5+4). What is the amount of X if the goal is to empty the account? Use 6% interest.
You need to have $18,000 to pay for your car in 7 years. How much do you need to deposit today in a bank that pays 5% interest, compounded annually, in order to achieve your goal?
← Suppose you start saving today for a $45,000 down payment that you plan to make on a house in 6 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you have to deposit now to reach your $45,000 goal in 6 years. An account with daily compounding and an APR of 4% D You should invest $ (Do not round until the final answer. Then round to two decimal places as needed.)
Give typing answer with explanation and conclusion
You want to purchase a car 4 years from now, and you plan to save $4,500 per year, beginning immediately. You will make 4 deposits in an account that pays 6.3% interest. Under these assumptions, how much will you have 4 years from today? (please round your answer to two decimal points)
You are saving for a new house. You place $55,000 into an investment account each year for five years. How much will you have after five years if the account earns (a) 3%, (b) 5%, or (c) 7% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) a. b. C. Annuity Payment $ 55,000 55,000 55,000 > Answer is complete but not entirely correct. Annual Rate 3% 5% 7% Interest Compounded Annually Annually Annually Period Invested 5 years 5 years 5 years Future Value of Annuity $ 63,760.07 X 70,195.49 X 77,140.35 x
You are saving for a new car. You place $14,200 into an investment account today. How much will you have after four years if the account earns (a) 4%, (b) 6%, or (c) 8% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
How much would be in your savings account in 7 years after depositing $350 today if the bank pays 10 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
A man wants to buy a $33,000 car. He will put 20 % down and finance the rest over 5 years. How much will his monthly payments be if he borrows the money at 4.8% annual interest, compounded monthly? Give the answer correctly to 2 decimal places.

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