Q: Your younger sister, Brittany, will start college in five years. She has just informed your parents…
A: given, A = $30,000 r=10% n = 4 years
Q: Mary Kate, Ashley, Dakota, and Elle each want to buy a new home. Each needs to save enough to make a…
A:
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: If she invests $1900 into a savings account for those 5 years at 6.5% interest, compounding…
A: Given that: Future value = $2500 Time period = 5 years
Q: Summer inherits $300,000 from her grandmother, and is trying to decide how much she needs to save.…
A: Present value (PV) is the current worth of the future value. It is computed if the future value is…
Q: The cost of tuition at the college that Lacy wants to attend is $12,500 per year. Lacy’s family will…
A: Total Amount to Save = $12,500 x 30% = $3,750
Q: Your parents start saving for your sister's college education. She will begin college at age 18 and…
A: Present value and future value is computed by discounting or compounding an amount. Future value is…
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: Christina plans to contribute $1,200 a year to her niece’s college education. Her niece will…
A: Future value of annuity refers to the total value of annual cash flows over a period of time at a…
Q: London purchased a piece of real estate last year for $83,600. The real estate is now worth…
A: Purchase price=$83,600 Present worth=$100,100 Rate of return=0.22 ⇒Total Return=(Present…
Q: Question 1 What would be the better outcome, renting or buying and by how much? (Show your work and…
A: Pierre is deciding on whether he should buy a house or rent it. If rented the expense will be $1500…
Q: Holly wants to have $250,000 to send a recently born child to college. She sets up a 529 plan and…
A: Future value (FV) = $ 250,000 Annual interest rate (R) = 6% Number of annual investment (N) = 17…
Q: Carol wants to have $500,000 when she retired in 25 years. Her credit union has an ordinary annuity…
A: GIVEN, FV = $500,000 N=25 M=12 R=4%
Q: Your parents will retire in 18 years. They currently have $250,000 saved, and they think they will…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Katie recently retired and met with her financial planner. She arranged to receive $40,000 the first…
A: Solution-a1=$40,000a2=$40,000+$210 =$40,210
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: Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the…
A:
Q: then what is the dollar amount of income that she needed to have to reach her objective?
A: Holding period is the total period for which an investor holds the investment i.e. the period…
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: A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a…
A: Here, To Find: Future value of annual savings (FV) =? Annual withdrawals made for 20 years after…
Q: Deborah is planning to buy a car in 3 years. She intends to buy the best car she can for $20 000.…
A: Future Value is the accumulated amount of present value at a future date. When interest is withdrawn…
Q: 1. To save for their new child's college education, a couple places $28,400 in an account. What…
A: Present value of a future amount With periodic compounded interest rate (i), period (n) and future…
Q: She arranged to receive $45,000 the first year. Because of inflation each year she will get $580…
A: A regular payment received by retired people is called pension. Inflation is the increase in general…
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: Jane has been given an opportunity to receive 20,000, six years from now. If she can earn 10% on her…
A: Present value is the current value of a future cash flow discounted to the present terms at a…
Q: Your parents will retire in 19 years. They currentlyhave $350,000 saved, and they think they will…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…
A: The future value function can be used for determining the future value of a present sum, or the…
Q: Jamie wants to have $800,000 for her retirement in 25 years. How much should she save annually if…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: The Turners have 10 years to save a lump-sum amount for their child’s college education. Today a…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
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: After several years of working, Katy has saved $125,000. If she invests that $125,000 in a savings…
A: Investment = $ 125000 Annual interest rate = 4% Period = 15 Years
Q: Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and…
A: Using excel PMT function
Q: sty needs to have $20,000 at the end of 6 years to fulfill her goal of purchasing a small…
A: Compound interest is determined by multiplying the starting principal balance by one and then…
Q: Asha feels she needs $45,000 per year in retirement. If she receives $30,000 a year from Social…
A: Data given: Annual requirement (atleast)= $45,000 Receipt from Social Security = $30,000 Investment…
Q: Clarissa wants to fund a growing perpetuity that will pay $10,000 per year to a local museum,…
A: Present value of the growing perpetuity is the amount she needs to fund today This can be calculated…
Q: Suppose that your parents are willing to lend you $20,000 for part of the cost of your college…
A: Calculation of interest rates as follows:
Q: What annual interest rate must they earn to reach their goal, assuming they don't save any…
A: Information Provided: Term = 29 years Present value = $250,000 Future value = $2,250,000
Q: Nest egg at 4% 2b. Nest egg at 8%
A: 1.
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: Your parents agree to pay half of the purchase price of a new car when you graduate from college.…
A: The simple interest is calculated by multiplying interest rate by principal amount for a certain…
Q: as just bought a house. She estimates that the roof will have to be renewed at a cost of €25,000…
A: The given problem can be solved using PMT function in excel. PMT function computes savings/…
Q: A man needs to set up a 529 colleges saving account for his granddaughter. How much will he need to…
A: using the PMT function in excel
Q: The Rodriquez family is determined to purchase a $250,000 home without incurring any debt. The…
A: The number of year would be calculated by taking the formula Future value of Annuity = A [((1+r)n-1)…
Q: London purchased a piece of real estate last year for $84,500. The real estate is now worth…
A: Income = Investment * ( 1 + total return )
Q: Last year Jane's grandmother offered to put enough money into a savings account to generate $5000 in…
A: Interest Payment = 5000 Time Period = 1 year Rate of return = 6%
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?
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- Aunt Zelda’s son starts college in 5 years for which she will need $15,000 payable at the end of each of the 4 years. Suppose she can buy an annuity in 5 yrs. that will enable her to make the four $15,000 annual payments. Draw a timeline for all cash flows. What will be the cost of the annuity 5 years from today? What is the most she should be willing to pay for it if purchased today? Assume an interest (discount) rate of 6% during these 9 years.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?Your sister will start college in five years. She has just informed your parentsthat she wants to go to a private university that will cost RM18,000.00 per yearfor four years (assumed at the end of each year). Your parents have startedinvesting RM3,000.00 per year since five years ago. How much will yourparents have to invest each year for the next five years to have the necessaryfunds for your sister's education? Use 10% interest rate throughout thisproblem.
- Mary Cooper, Sheldon's mother, who lives in east Texas, wants to help pay for her grandchild's education. How long will it take Mary to reach her goal of $295,000 if she invests $10,000 per year, earning 6 percent? Use Appendix A-3 or the Garman/Forgue companion website. Round your answer to the nearest half-year. yearsA father is trying to save for his daughter’s wedding in two years. (Long engagement!). He thinks he can make the following contributions to an account: $14,545.00 today and $13,130.00 in one year. The father thinks he can earn 7.00% in the market each of the next two years. If the wedding is expected to cost $52,815.00 two years from today, how much will he need to contribute at the time of the wedding to cover its cost?6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?
- You have recently adopted a child and are planning to save for her college education. You want to have $50,000 saved by the time she starts college in 18 years. If your savings account offers an annual interest rate of 3%, how much should you deposit each year in order to reach your goal?Beverly is considering starting her small family business in five years’ time. She has decided to deposit 400,000 at the end of each year for 5 years in a savings account earning 10% per annum. Required:i. How much will Beverly have at the end of the five years? ii. How much will she have at the end of the five years if she decides to deposit 600,000 at the beginning of each year in the same account?You and your sister are planning a large anniversary party 3 years from today for your parents' 50th wedding anniversary. You have estimated that you will need $6,500 for this party. You can earn 2.6 percent compounded annually on your savings. How much would you and your sister have to deposit today in one lump sum to pay for the entire party? Can the excel and calculator solution be provided?
- Imagine you are a financial advisor to Valerie VanNess. Ms. VanNess wants to retire in 25 years. She wants to start saving an annual amount at the end of each year until she retires. She expects to live for another 20 years after she retires. During retirement she wants to withdraw $15,000 at the start of each year from a savings account. She can earn 10% per year on balances in this savings account a. How much will Ms. VanNess have to deposit in the savings account at the end of each year for the next 25 years, if the interest rate is 10%, compounded annually? b. How would the yearly deposits be changed if Ms VanNess expects her cat to live for another five years after her death, and she wants to leave an amount in an account that will be used to pay the cat sitter $5500 at the start of each year, for those five years. (Draw a new timeline, or add to your timeline above).A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $40,000 saved up for when she goes to college in 16 years, assuming the account earns a 4% return.Suppose a husband wants to take his wife on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $20,000 inheritance from an uncle and intends to invest it for the trip. The husband estimates the trip will cost $26,600. What interest rate, compounded annually, must be earned to accumulate enough to pay for the trip? Note: Use tables, Excel, or a financial calculator