Deborah is planning to buy a car in 3 years. She intends to buy the best car she can for $20 000. She has $17 500 to invest in an account that compounds interest semi-annually. What rate of interest will Deborah need in order to meet her goal?
Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 5…
A: Compound interest is a type of interest that includes the initial principal as well as all the…
Q: Mr. and Mrs. Revilla decided to sell their house and to deposit the fund in a bank. After computing…
A: The question is related to the annuity due. The details are given. The present value of annuity due…
Q: Nathan and Stephanie are saving for their daughter's college education. Their daughter, Paige, is…
A: Time Value of Money states that the amount of money present with us now is way more than the sum of…
Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…
A: The present value of the amount represents the current value of the future cash flows. The…
Q: Beverly is considering starting her small family business in five years’ time. She has decided to…
A: Ordinary annuity would be considered as the annuity payment made at the end of the year and annuity…
Q: Betty wants to save $500,000 in four years. She wants to make monthly deposits into an account which…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: Beverly is considering starting her small family business in five years’ time. She has decided to…
A: i. Given Annuity=400,000 Interest rate=10% p.a. No. of years=5 FVAn=A1+rn-1r where FVAn=Future…
Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…
A:
Q: Mrs. Maria Alading borrowed 20,000 pesos from her friend Ms. Petra Hausen to pay the tuition fee of…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: James wants to buy a car in 5 years. The car is expected to cost $30,000 at that time. How much…
A: The amount required to invest today can be calculated as the present value of lump sum
Q: Michelle is attending college and has a part-time job. Once she finishes college, Michelle would…
A: The value of any current asset, depending on the assumed rate of growth, at a future date is called…
Q: Alexis and Will are purchasing a home. They wish to save money for 10 years and purchase a house…
A: formula to find future value of annuity: fva=A×1+rmm×n-1rmwhere,A= annuityr = rate of interestm =…
Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…
A: Solution: Current annual cost is $13,000 and these costs expected to increase by 6% annually.…
Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…
A: Current annual cost= $18000 College savings= $7000 Interest= 9%
Q: Molly Lincoln, a 30-year-old personal loan officer at First National Bank, understands the…
A: 1) Hence, the account balance after 65 years is $1021906.79.
Q: Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If…
A: CD stands for certificate of deposit. In this instrument, a customer can deposit money in a bank and…
Q: Mike Smith just turned 16 years old. He wishes to buy a used car in one year, and he is willing to…
A: The value of money changes with time. Therefore, the time value of money considers the money…
Q: client plans to send a child to college for four years starting 18 years from now. having set aside…
A: First we need to calculate present value of at 17 years for 4 year collage fee by using this formula…
Q: Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each…
A: Future Value = $22,000 Time Period = 6 Years Interest Rate = 5.8%
Q: Jennifer is planning to attend college when she graduates from high school 4years from now. She…
A: The frequency of payment is annual. However the interest rate is 12% compounded daily. Further there…
Q: Your parents plan to spend $20,000 on a car for you upon graduation from college. If you will…
A: Present value is a current value of future cash flows at a given rate. It is given as: P.V =…
Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…
A: Required: Compute the value of annual deposits to be made by the father so that college expenses can…
Q: Perry is a freshman. He estimates that the cost of tuition, books, room and board, transportation,…
A: The present value of an annuity is the current worth of a series of cash flow at a certain interest…
Q: Keith is saving in a bank in order to purchase a new house in six years. She anticipates that the…
A: Future value refers to the value that an amount would assume at a future time period after…
Q: (a) Rashidah intends to buy a motorcycle for his son, Ahmad, on his 20th birthday 4 years from now.…
A: Present Value = Future Value/(1+r)n Where r = Interest Rate n = Time period
Q: Ms. Ligaya wants to buy her dream car. However, she does not have enough money to pay for ₱5,000,000…
A: Principal amortization means an amount of principal borrowing payment included in the instalment.…
Q: Rhonda has saved $1,200,000 in an account. Her goal is to have 1,500,000 saved up to use as down…
A: given, pv = $1200,000 n=5 r=2.5%
Q: Lena is regularly saving money in order to buy a new car at the end of 7 years. If the car is 30,000…
A: Cost of Car is 30,000EUR Interest rate is 2% Time period is 7 years or 7×12 = 84 months To Find:…
Q: Beverly is considering starting her small family business in five years’ time. She has decided to…
A: Investors are supposed to estimate the value of investment with the interest rates and time period.…
Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 5…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…
A: Inflation rate is the rate at which prices of goods and services increases over a period of time…
Q: Ronnie invests $55,000 in a food truck (which has a lifespan of two years) , the net cash flows of…
A: In order to find net present value, subtract the present worth of cash outflows (or initial…
Q: Delany wants $15,000 saved in 2 years to make a down payment on a house. How much money should she…
A: present value formula: present value=future value1+rmm×n where, r=interest rate m=frequency n=years
Q: Susan Orman wants to pay $1,500 semiannually to her granddaughter for 10 years for helping her…
A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…
Q: Kourtney currently works at Bruin Productions and decide to finally plan for the future, she wants…
A: Information Provided: Future value = $250,000 Term = 10 years Interest rate = 6.1% compounded…
Q: Kristi Perez puts $10,500 into an account to save money to buy a car in 12 years. She expects the…
A: We require to calculate the interest rate from following details given in the question: Current…
Q: Booker graduated from Baruch 10 years ago and now wants to buy his first condo. He has saved enough…
A: Given: Particulars Amount Years 10 Savings $100,000 Loan $400,000 New home $500,000
Q: Ginny is planning for her son's college education to begin five years from today. She estimates the…
A: Frist we need to calculate present value of annuity due by using this formula PV of annuity due…
Q: Theadre Adams wants to open an accounting firm once she gets out of college in 4 years. She has…
A: Future value of annuity is the value of stream of recurring cashflow compounded to future date at…
Q: Ms. Ligaya wants to buy her dream car. However, she does not have enough money to pay for ₱5,000,000…
A: The question is based on the concept of Financial Management.
Q: Tala McLouf, a 21-year-old BBA graduate, likes to plan for her future ahead, and would like to save…
A: Since the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…
Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…
A: Annuity means series of finite no. of payments which are same in size and made in equal intervals…
Q: Sofia and Manuel are purchasing a home. They wish to save money for 15 years and purchase a house…
A: Given: Time =15 yearsMonths =15×12=180Value of House =$200000Rate =5% compounded…
Q: Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If…
A: According to the time value of money rule, a dollar sum may have different purchase capacities in…
Q: Starting next year, Moussa Al Khatib will need $10,000 annually for 4 years to complete his…
A: Given information: Amount needed in next year $10,000 Number of years 4 Interest rate is 5%.
Q: Aini wishes to have 93,000USD to purchase a car in 6 years as part of her financial goals. How much…
A: Future Value = 93,000 USD Time Period = 6 Years Interest Rate = 8%
Q: If Cheryl has four years until she gets her driver’s license, will she have enough to buy a used car…
A: Future value: It is the value of the sum of money in the future, compounded at a specific interest…
Q: In 10 months, Alex will need $1,320.00 to pay her college tuition. How much does she need to invest…
A: Computation of amount need to be invested by Alex is as follows:Rate of interest=8.745%amount after…
Q: A father is now planning a savings program to put hisdaughter through college. She is 13, plans to…
A: Given information: Annual cost is $12,000 Expected to increase by 6% annually Annual savings of…
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 3 images
- Lauren wants to buy a car that costs $27,000. She has $22,000 in her bank account currently. If the bank provides with a 7- simple interest rate, how long she will have to wait to reach to her goal of buying that car? Round your answer to the nearest year.Frances plans to save money for a down payment on a house using an investment account that pays an interest rate of 5.3% per year. She wants to have $425, 000 available five years from today. Frances intends to deposit an amount today and at the end of each of the next five years into her investment account (i. e. she will make a total of six deposits, all of the same amount). How much will each of these deposits be? (Enter your answer to two decimal places)Christina plans to contribute $1,200 a year to her niece’s college education. Her niece will graduate from high school in 10 years. If the interest rate is 6%, how much money does Christina need to save for her by the time she graduates from high school?
- Tori is planning to buy a car. The maximum payment she can make is $3400 per year, and she can get a car loan at her credit union for 7.3% interest. Assume her payments will be made at the end of each year 1–4. If Tori’s old car can be traded in for $3325, which is her down payment, what is the most expensive car she can purchase?Your mother wants to buy a car which will cost $15,000 five years from today. She would like save $2,450 at the end of each year (for the next five years) in an account, so as to have the amount she needs. What interest (to the closest percent) must she earn in this account to achieve this financial objective?Sarah wants to save $20,000 to use for a down payment on a home. She deposits some money into a 4-year certificate of deposit (CD) with an annual interest rate of 4.5% compounded monthly. How much does Sarah need to deposit in the CD to reach her goal of having $20,000 in 4 years? Round your final answer to the nearest dollar.
- Gabby is planning to buy a home. She has some money for a down payment already saved. She sees a home she would like and calculates that she would need to borrow $210,000 from a bank for a 30-year period. The APR is 7.2%. What will be her total interest for the 30 years? Step 1) What is the monthly payment? Step 2) What are the total payments ($) for the entirety of the loan? Step 3) What is the total interest?Your parents start saving for your sister's college education. She will begin college at age 18 and will need $4,000 per year at the end of each of the next 4 years. They will make a deposit one year from today in an account which pays 6% compounded annually, and an identical deposit each year including the year she starts college. If a deposit of $1,987 will allow them to reach their goal, how old is your sister now?Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If the bank CD she wants to invest in will pay 7.5 percent annually, how much will she have to invest today
- Joann wants to save for her daughter's education. Tuition costs $9,000 per year in today's dollars. Her daughter was born today and will go to school starting at age 18. She will go to school for 4 years. She can earn 12% on her investments and tuition inflation is 6%. How much must she save at the end of each year if she wants to make her last savings payment at the beginning of her daughter's first year of college? $1,889 $2,117 $2,370 $1,700Tala McLouf, a 21-year-old BBA graduate, likes to plan for her future ahead, and would like to save $47.50 every week for her retirement later on. At the end of each year, Tala would invest her total accumulated savings into an account at the local credit union paying her a yearly interest rate of 8.25%. How much money will Tala be able to save per year? How much money will Tala have saved when she reaches 55 years old? How much would Tala have saved by the time she is 60 years old, if she starts investing for her retirement at the age of 40 after paying off the mortgage for her house in Los Angeles? Even if Tala starts saving at 40, she would still like to have the same amount of money in her account when she is 60 as she would have had, had she started saving back when she was 21.Joanna’s Dad is looking to deposit a sum of money immediately into an account that pays an annual interest rate of 10% so that her first-year's college tuition costs are provided for. Currently, the average college tuition cost is $15,000 and is expected to increase by 5% annually (the average annual inflation rate). Joanna just turned 3 and is expected to start college when she turns 18. How much money will Joanna’s Dad have to deposit into the account?