You would like to save for a car. You would like to have $20,000 saved in 5 years. You decide to make payments at the end of each month into an account earning 6.7% interest per year, compounded monthly for the next 5 years in order to accumulate the desired amount.  a) What size payments should be made? Round to the Penny $  b) How much total interest did they earn on the investment over 5 years? Round to the penny $

Q: You are saving for a new house. You place $47,000 into an investment account at the end of each year…

A: Future value of annuity payment is the value of recurring payments at a future date considering a…

Q: You invest $10,000 into an account that earns 4.5% simple interest each year. Give an equation…

A: Amount invested in the account is $10,000  Simple interest rate is 4.5% Time period is 30 years To…

Q: If you are willing to loan someone $100 and expect to be paid back $200 and earn 12% on your…

A: Given Loan amount is $100 Amount to be paid back is $200 Rate of return is 12%

Q: Give me correct answer with explanation

A: The problem is asking us to find the future value of an investment. The future value is the amount…

Q: You would like to save for a car. You would like to have $20,000 saved in 4 years. You decide to…

A: Future value required (FV) = $ 20,000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 =…

Q: You would like to have $800,000 when you retire in 40 years. How much should you invest each quarter…

A: The future value of an annuity is the amount that a series of payments, or annuity, will grow to…

Q: Calculating interest earned and future value of savings account. If you put $6,00 in a savings…

A: The value that is estimated for the future on the basis of current value and rate of interest is…

Q: if you place $1100 today into an account that pays simple interest and you have $6100 dollars in the…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: You took out a student loan in college and now have to pay $1,900 every year for 20 years, starting…

A: Present Value is the value of all future cash flows discounted at a given rate of interest for the…

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: You would like to contribute to a savings account over the next three years in order to accumulate…

A: Compound = Quarterly = 4Number of Payment = n = 3 * 4 = 12Interest rate = i = 14 / 4 = 3.5%Payment =…

Q: You have an investment account that started with ​$2,000 10 years ago and which now has grown to…

A: Future value is an estimated value of the investment by an investor during period of time. This is…

Q: Suppose you invest $120 a month for 8 years into an account earning 10 % compounded monthly. After 8…

A: Compound = monthly = 12monthly Payment = p = $120Interest Rate = r = 10 / 12%Number of Payment = n =…

Q: You want to buy a nice road bike. You place $2,200 at the end of each year in an investment account…

A: The future value of an annuity is the total amount of money that will accumulate over a series of…

Q: You need to save $200 000 by making monthly deposit of 100 for 6 years. How much interest must you…

A: Rate of interest refers to the percentage of return on the investment.

Q: A) calculate the amount of money you will have after 25 years if you deposit $150 each month in an…

A: Monthly deposit: Monthly deposits are instructions to the bank or financial institution to take a…

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…

A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…

Q: Suppose you receive​$130 at the end of each year for the next three years.    a. If the interest…

A: The PV of an asset is the value of all its cash flows today discounted at an assumed interest rate.…

Q: 6) You buy a $400,000 house. The loan is for 25 years and is at 4.5% monthly. What is the monthly…

A: Loan is a contract between lender & borrower where lender provides funds to borrower for…

Q: Someone wants to save a sum of money. They are planning to save for a 5 year period with a deposit…

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

Q: Use the savings plan formula to answer the following question.   You put ​$300 per month in an…

A: Monthly investment = $300Interest rate = 2.5%Period = 17 years

Q: If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much…

A: PV=FV/(1+i)^n (PV= present value FV= Future value i= discount rate  n= Number of period ) FV=…

Q: You invest $5 daily into an account earning 6% compounded daily. How much will be in the account…

A: FV stands for future value which is the concept that allocates the value to the asset grounded on…

Q: You are saving for a new house. You place $40,000 into an investment account each year for five…

A: Future value refers to the monetary worth of an investment or cash flow at a future date, assuming…

Q: Having trouble, please help! You would like to have $1,000,000 when you retire in 35 years. How…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: You started an investment account 10 years ago with $2100, and it now has grown to $8900. a. What…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Suppose you found a CD that pays 2.9% interest compounded monthly for 5 years. If you deposit…

A: 1) FV = PV * (1 + r / m)m*n FV = future value PV = present value = $12,000 r = rate of interest =…

Q: you want to have $15,000 at the end of 5 years. if you can earn a return of 3.2% annually, how much…

A: given, fv= $15000 r=3.2% n=5 years

Q: Suppose you have been saving for the last 4 years to buy a new mountain bike. This year you will…

A: We need to use future value of ordinary annuity formula below to calculate total savings in bank…

Q: What is the amount you would have to deposit today to be able to take out $2070 a year for 2 years…

A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve…

Q: How much will accumulate in three years by depositing $560 at t Note: Use tables, Excel, or a…

A: Future value estimates are critical for making sound financial decisions, such as retirement…

Q: Suppose you want to save $220,000 for retirement. You will do so by putting monthly deposits into an…

A: Retirement planning involves the set of activities that determines the income goals that an…

Q: Suppose you invest $200 a month for 6 years into an account earning 9% compounded monthly. After 6…

A: Time Value of Money states that a dollar is worth more today than anytime in the future because they…

Q: How much would you still owe at the end of the first year, after you have made the first payment?

A: Step 1:We have to calculate the amount still owed after 1st year. For this, we calculate the yearly…

Q: Suppose you borrowed $1,000 from the bank and the rate of interest was 5%. What would the simple…

A: Simple Interest Simple Interest (S.I.) is a way of computing the amount of interest earned for a…

Q: You have decided to open a savings account and put $11000 in your local bank at an interest rate of…

A: Formula used:

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.