You're trying to save to buy a new $195,000 Ferrari. You have $32,000 today that can be invested at your bank. The bank pays 3.9 percent annual interest on its accounts. How long will it be before you have enough to buy the car? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Length of time years

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: : identify the values for the variables, in write an equation that can be used to find the amount of…

A: Future Value: It is the future worth of the present sum of the amount and is estimated by the…

Q: You have $480 to put into a savings account, and a bank offers you two options: Account A pays 3.1%…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: You're trying to save to buy a new $192,000 Ferrari. You have $42,000 today that can be invested at…

A: FV = A * (1+r)nwhereFV = future valueA = amount investedr = interest raten = time period

Q: You want to borrow $64,000 from your local bank to buy a new sailboat. You can afford to make…

A: The amount to be borrowed is $64,000 The monthly payment that can be afforded is $1,100 The time…

Q: 1. You want to start saving for retirement. In a savings account, you deposit $100 at the end of…

A: We need to use RATE function in excel to calculate interest rate on loan. The equation is:…

Q: the amount you need to save each month

A: given   fv=25000 n= 5*12=60 interest i = 3.5% PMT =?

Q: You are saving for a new car. You place $15,400 into an investment account today. How much will you…

A: Present Value (PV) of amount invested = $15,400Interest rate (r) = 2%, 4%, 6% or 0.02, 0.04,…

Q: I now have $23,000 in the bank earning interest of 0.50% per month. I need $33,000 to make a down…

A: Future value of the amount is the amount being deposited and amount of interest accumulated on…

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: You're trying to save to buy a new $205,000 BMW 3 series sedan. You have $55,000 today that can be…

A: Cost of BMW = $205,000Amount available = $55,000Interest rate = 5.4%

Q: You can earn .41 percent per month at your bank.   If you deposit $2,400, how long must you wait…

A: Using excel NPER function

Q: If you invest €1,000 in a savings account that pays 4 per cent every year, how long would it take…

A: Present Value = pv = €1000Interest rate = r = 4%Future Value = fv = 1000 * 3 = €3000

Q: Suppose you plan to start a saving account. You plan to deposit $98 each month in to a money market…

A: Compound = Monthly = 12Payment = p = $98Interest Rate = r = 6 / 12 = 0.5%Future Value = fv = $2000

Q: You have $1,000 today in your savings account. How long must you wait for your savings to be worth…

A: Part-1) Present Value is $1,000 The future Value is $2,000 The interest rate is 0.25% compounded…

Q: I now have $30,000 in the bank earning interest of 0.75% per month. I need $40,000 to make a down…

A: Compound = Monthly = 12Present Value = pv = $30,000Monthly Interest Rate = rate = 0.75%Future Value…

Q: How much money would you have to deposit today in order to have $5,000 in three years if the…

A: Present Value = Future Value / ( 1 + discount rate )years

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 saved 18,000$ for a down payment on a house. Your bank requires a down payment of 15%. What is…

A: Introduction: Down payment or mortgage installment refers to the periodic payment made against the…

Q: ou can earn .38 percent per month at your bank. If you deposit $2,100, how long must you wait until…

A: Future value of money is the amount that is deposited and amount of interest accumulated over the…

Q: You can earn .51 percent per month at your bank. If you deposit $3,400, how long must you wait until…

A: The number of months can be calculated with the help of future value function

Q: You have 45 remaining monthly payments of $688 until you pay off your car loan with interest.…

A: In order to find the current balance of the loan today one has to find the Present value of the…

Q: Suppose you have saved $216 each month for the last 7 years to make a down payment on a house. The…

A: The objective of the question is to calculate the total amount in the savings account after 7 years…

Q: Suppose you walk into a bank and want to make a 10-year deposit. Bank manager tells you that the…

A: Annual deposits = $10,000Period = 10 yearsInterest rate = 5%

Q: You want to buy a new sports car 3 years from now, and you plan to save $4,800 per year, beginning…

A: FV of annuity= pmt*((1+r)^n-1) /r

Q: You want to buy a car, and a local bank will lend you $15,000. The loan would be fully amortized…

A: The time value of money (TVM) is a concept in finance that refers to the idea that money available…

Q: You have saved $22,000 for a down payment on a house. Your bank requires a minimum down payment of…

A: Down payment amount = $22,000 Down payment ratio = 11%

Q: After making the thirtieth payment of $582.48 on your car loan, you wanted to find out how much is…

A: Amortization: Process of reducing loan balance in a systematic manner is called amortization.…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.