You would like to save up $13907 to travel in 9 years.  To do so, you will buy a savings bond that has an interest rate of 11.5%.  How much must you invest in the bond today to reach your goal? Answer:

Q: tated face value? savings bond cost when you initially purchase it? Assuming 2.69 percent annually,…

A: NPER" stands for the "Number of Periods" in financial and investment calculations. It is a function…

Q: 0. You are considering a savings bond that will pay $700 in 15 years. If the interest rate is 2%,…

A: Future Value = fv = $700Time = t = 15 yearsInterest Rate = r = 2%

Q: 5. Suppose you save $19,000 per year in an ordinary annuity promising you an interest rate of i =…

A: 5. Periodic payment, P = $19,000Interest rate, r = 7.625% Number of periods, n = 35 years The future…

Q: Suppose the government decides to issue a new savings bond that is guaranteed to double in value if…

A: Step1: Calculating the value of rate of return on the investment in the bond. We have,The…

Q: You decide to save $431 per month in equity securities, which you anticipate earning an interest…

A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment. The…

Q: Suppose the government decides to issue a new savings bond that is guaranteed to double in value if…

A: Present value of Annuity The future cash flow is discounted to determine the present value of an…

Q: You are thinking about buying a savings bond. The bond costs $57 today and will mature in 10 years…

A: Present Value = pv = $57Time = t = 10 YearsFuture Value = fv = $114

Q: You plan to invest $10,000 for 180 days. Your bank offers a rate of 2.60% on 90-day GICS and 2.85%…

A: We have in The Question, Principal = $10,000 Period = 180 days OPTION-1 90 Days GIC Interest Rate =…

Q: You are thinking about buying a savings bond. The bond costs $42 today and will mature in 13 years…

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: You are thinking about buying a savings bond. The bond costs $48 The bond will earn an annual rate…

A: Present Value = pv = $ 48Time = t = 12 YearsFuture Value = fv = $ 98

Q: what is the payment every​ year

A: To calculate the payment at the end of each we will use below formulaAnnual payment = PV*rWherePV -…

Q: You have decided to buy a perpetual bond. The bond makes one payment at the end of every year…

A: Interest Rate = r = 5%Initial Cost of Bond = ic = $3000

Q: If you had two investments to choose from, one a perpetuity that pays $100/year forever, or the…

A: Alternative 1: Perpetuity that pays $100/year forever Alternative 2: Bond that pays interest of…

Q: The bond will pay you $100 at the end of each year for three years. At the end of the third year,…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: You purchased a bond at a price of $800. In 15 years when the bond matures, the bond will be worth…

A: A bond reveals the debt instrument that allows the issuer to raise funds from the public. The holder…

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. a. Find the…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: What would you pay for a $175,000 debenture bond that matures in 15 years and pays $8,750 a year in…

A: Issue price of the debenture = Present value of principal + Present value of interest payments…

Q: You are going to buy a house and borrow $542474 with a 30-year mortgage.  Your interest rate is…

A: The future value concept is widely used in finance and economics, including in the areas of…

Q: Imagine that a $10,000 ten-year bond was issued at an interest rate of 6%. You are thinking about…

A: Using excel PV function to calculate the amount you will be willing to pay for this bond.

Q: You have an opportunity to purchase a bond that will pay out $815 in 10 months. If you would like…

A: Payout in 10 months = $ 815 Interest rate = 2.2% Period = 10 months

Q: if a bank has 100Mn loan, 200Mn deposit, 10Mn capital and 100Mn investment in Government bond, the…

A: Bank's Balance SheetAssets:Loans: $100 millionInvestments (Government Bonds): $100 million(Since the…

Q: You are considering investing in a savings bond that will pay $50,000 in 6 years. If the competitive…

A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…

Q: You are considering a savings bond that will pay $100 in 8 years. If the interest rate is 2.2%, what…

A: The objective of this question is to find out the present value of a savings bond that will pay $100…

Q: Suppose the government decides to issue a new savings bond that is guaranteed to double in value if…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Please show full steps and correctly thanks

A: General information:Present value refers to the current valuation of a future sum. Investors…

Q: The bond will earn an annual rate of %. (Round to two decimal places.)

A: An investment that simulates a debt commitment is called a bond. A government, municipality,…

Q: Suppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this…

A: GIVEN, PMT = $1621.50 LOAN AMOUNT (P) =$ 250,000 N = 30 YEARS R = 6.75% IF YOU PAY 40% EXTRA YOUR…

Q: You purchased a bond at a price of $2,100. In 30 years when the bond matures, the bond will be worth…

A: Rate of return is amount of profit earned on investment based on initial investment.Purchase price…

Q: You purchased a bond at a price of $1,400. In 25 years when the bond matures, the bond will be worth…

A: Sure, here's the calculation presented in a clear format:Calculate Total Return:Ending Value (Value…

Q: Using an annual effective interest rate of 8%, determine X.

A: To determine the value of X, we need to calculate the present value of the cash flows using the…