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 $

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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 =…

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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: can you solve it with formulas? please make your text readable.

A: Answer  Deposit today = $100 Interest rate = 8% Time = 15 year

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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…

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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.

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

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A: Solution: An amount invested earns interest over it. So, we have, FV = PV (1+i)t where, FV = Future…

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

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

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

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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…

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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

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

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A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: You want to save $1,000 a month for the next 10 years to buy a townhome The money will be set aside…

A: Compound = Monthly = 12Payment = p = $1000Number of Payment = n = 10 * 12 = 120Interest Rate = r =…

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.