Your aunt is planning to invest in a bank CD that will pay 7.5% interest semi annually. If she has $5,000 to invest, how much will she have at the end of 4 years?
Q: Ted rodgers is investing $7,500 in a bank cd that pays a 6% annual interest. How much will the cd be…
A: Excel Spreadsheet:
Q: Roland just put RM1,000 in the fixed deposit and intend to leave it there for 10 years. If the bank…
A: Formula Future value = PV*(1+(i/c))n*c Where PV = Present value i.e. RM1,000 i = Interest rate i.e.…
Q: A 20-year-old student wants to save RM 4 a day for her retirement. Every day she places RM 4 in a…
A: An annuity is a series of cash flows such as income or payment over a specific duration. Each cash…
Q: Roger decides to start an investment account by depositing $5,000 today. In one year he will invest…
A: Initial deposit (Year 0) = $5,000 Year 1 Deposit = $500 Year 2 Deposit = $600 Year 3 Deposit = $700…
Q: Suzan Long is considering buying a home for$350,000.(a) If she makes a down payment of $50,000…
A: In this problem, a person purchases a home for $350,000 and make down payment of $50,000. The…
Q: JOSH WANTS TO BUY A HOUSE AND WOULD NEED A $200,000 LOAN. HE WILL AMORTIZE THE LOAN FOR OVER 15…
A: Solution Firstly lets calculate the annual installment Annual installment = loan amount/…
Q: Jordan's investment manager offers her an interest rate of 8.0% compounded monthly on her…
A: Earlier Interest rate is 8% Compounded monthly Interest rate changed to is 8% compounded annually…
Q: Omar wants to buy a house in another 7 years. The type of house he wants to buy is currently selling…
A: Future value: Future value is $97,435.86
Q: Alphonse is going to put $2500 in an interest bearing account that pays 3% interest and leave it for…
A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…
Q: You want to have $50,000 in your savings account 12 years from now, and you’re prepared to make…
A: The annuity refers to the regular payment or receipt that lasts over a period of time. The annuity…
Q: Anna's son, Steven will start college in 5 years. Tuition costs $29,000 today, increasing at an…
A: Data given:: Tuition costs today = $29000 Annual growth rate in tuition = 5.7% Interest rate on…
Q: Charlotte wishes to accumulate $100,000 in a savings account in 10 years. If she wishes to make a…
A: Present value indicates the current value of a future earning or sum incurred in the future years…
Q: Dottie wants to buy a 150,000 house and puts a down payment of 60,000. He makes monthly payments for…
A: Given:
Q: Mr. Ramos savings allow her to withdraw 50,000 semi-annually for 11 years starting at the end of 5…
A: Solution Concept This is the problem related to time value of money Present value is calculated by…
Q: Jeremy is investing $5,000 today and will do so at the beginning of another nine years for a total…
A: The future value of the annuity due is the future worth of a cash flow series receivable/period at…
Q: Mr Sundani wants to buy a car in three years time. He starts investing R3000.00 per month at an…
A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.
Q: Ms. Maya Manaco has P2,500,000 to invest for a ear. She can lend it to his brother who has agreed o…
A: Solution Given Alternative 1 Simple interest Rate 10% Present value 2500000…
Q: Ms. Perez wants to invest in a savings account with interest rate of 9% per year. She decided to…
A: Present value of annuity is the current value of the future payments that are calculated using the…
Q: Bob and Pat want to purchase a vacation home in ten years and need $45,000 for a down payment. How…
A: Time value tells that money received today has more value than that of receiving exact value later…
Q: (b) Aminah plans to buy a house in Shah Alam which the market price is RM450,000. To buy the house,…
A: The amount to be deposited each year is known as an annuity. It refers to the equal payments made at…
Q: Colin thinks he can reasonably expect to buy a house in five years. He would like to have…
A: Calculation of investment (P):Answer:The amount of investment that Colin has to invest annually is…
Q: Roland just put RM1,000 in the fixed deposit and intend to leave it there for 10 years. If the bank…
A: Investment amount = RM 1,000 Annual interest rate = 16% Semi annual interest rate = 16%/2 = 8%…
Q: Sarah wants to have $20,000 in nine years. If she puts the money in an account which pays 4%…
A: For solving we have to calculate present value of future value considering compounding monthly…
Q: kaye's housing loan worth 810,000 for 5 years was approved by the bank with an interest rate of 8%…
A: A loan refers to the amount of money taken by an individual from the lender by the borrower in case…
Q: Lloyd would like to save $4,300 at the end of every year for the next 3.5 years in a savings account…
A: Interest earned: If the cash basis of accounting is being used, then the amount of interest earned…
Q: Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to…
A: Before making any calculation let us first arrange these cashflows into a cashflow time line chart.…
Q: It is now five years later, and Adrian has saved enough money for a 20 percent down payment on a…
A: Time value of money: Time value of money refers to the concept that the value of money available at…
Q: Jacob has 5000 dollars and wants to earn 6500 dollars from the bank. If the bank gives a compound…
A: It will take 6.69 years for Jacob to reach 6500 dollars
Q: Your brother has asked you for a loan and has promised to pay back $7,750 at the end of three years.…
A: Present value is the worth of amount in current time that is expected to be receive in some future…
Q: Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the…
A: Down payment = 20% Loan (L) = 80% of $176000 = $140800 n = 15 years = 180 months r = 8.2% per annum…
Q: Bozo decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…
A: The periodic payment is the amount that will be paid every period until the loan amortized which…
Q: Poonam wants to invest in an account today to have S4000 at the end of 8 years. If she can invest at…
A: As per the given information: Amount (A) = $4,000 Rate (r)= 4.25% Period (t) = 8 years To determine:…
Q: You think you will be able to deposit $4,000 at the end of each of the next three years in a bank…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: Hannah wants to have $ 6500 to help pay for a new deck in 16 years. If she wants to put her money…
A: Future value required (FV) = $6500 Period of investment (n) = 16 Years Value of e = 2.7182818285…
Q: 1.) Miller likes to invest in annuity that will pay him Php. 5000 at the end of each month for 5…
A: Note : As per the guidelines, only first question will be answered. Kindly post the second question…
Q: You would like to have $53,000 in 13 years. To accumulate this amount, you plan to deposit an…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: Kim's savings may allow her to withdraw P50,000.00 semi annually for 5 years starting at the end of…
A: An annuity is a financial term that depicts a series of cash flow occurring at an equal time…
Q: Sidney makes 10 annual deposits of 5,500 each into an investment account. The interest rate is 6%…
A: Investments are the ways through which money is saved in various financial instruments and accounts…
Q: Your mother is expecting to get ₱18,000 in two years’ time after investing in government securities…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: If you desire to have $10,000 for a down payment for a house in five years, what amount would you…
A: Calculation of Amount to Deposit Today:The amount to deposit today is $7,835.26.Excel Spreadsheet:
Q: Aunt Zelda’s son starts college in 5 years for which she will need $15,000 payable at the end of…
A: Aunt Zelda will buy an annuity at the beginning of year 5 that will pay $15000 for college at the…
Q: Jane wants to borrow $100,000 from the bank for up to 3 years at an APR of 8.5% with interest…
A: Interest is an extra amount which borrower has to pay on the deposited amount for the period. It is…
Q: Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The…
A: Information Provided: Return for the first 11 years = 1.40%Return for the next 16 years = 6.90%…
Q: Alicia's investment manager offers her an interest rate of 8.0% compounded monthly on her…
A: Annual deposit in case of monthly compounding:- Interest rate = 8%…
Your aunt is planning to invest in a bank CD that will pay 7.5% interest semi annually. If she has $5,000 to invest, how much will she have at the end of 4 years?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Ms. Maya Manaco has P2,500,000 to invest for a year. She can lend it to his brother who has agreed to pay 10% simple interest for the year, or she can invest it with a bank at 8% compounded quarterly for a year. Which of the alternatives will yield a higher interest? By how much? **Assume that you plan to buy a condo 5 years from now and you need to save for a down payment. You plan to save 2, 500 per year (with the first deposit made immediately), and you will deposit the funds in a bank account that pays 4% interest. How much will you have after 5 years? How much will you have if you make the deposits at the end of each year?your wealthy great aunt is going to help you finance the purchase of your first condo. She will lend you $80,000 today. You agree to pay her 5 equally sized payments. The first payment will be 1 year from today, and 4 more payments will follow every 3 years (so payments at the end of years 1, 4, 7, 10, and 13). If the interest rate she charges is 2.00% per year, how much will each payment be?
- Assume that you plan to buy a condo 5 years from now, and you need to save for adown payment. You plan to save $2,500 per year (with the first deposit made immediately),and you will deposit the funds in a bank account that pays 4% interest. Howmuch will you have after 5 years? How much will you have if you make the depositsat the end of each year? ($14,082.44, $13,540.81)Bill Baxter has $25,000 to invest for a year. He can lend it to his sister, who has agreed to pay 10% simple interest for the year. Or, he can invest it in a retirement plan expected to pay 6% compounded quarterly for a year. How much additional interest would the simple interest loan to his sister generate?You know that you'll inherit $10,000 in 19 years. If you borrow $6,000 now and plan to pay it off with the money you'll inherit, what is the highest annual interest rate you can afford on the loan?
- Mrs Sam has deposited $ 18,000 in a bank at the rate of 7% per annum. Find out how much she will receive after 12 years? Also comment on what effect will she get on her initial deposit if the rate is changing to 10% if she still willing to receive the same sum after 12 years.If you desire to have $15,000 for a down payment for a house in six years, what amount would you need to deposit today? Assume that your money will earn 2 percent.Karen wants to have $22,011 in her investment account in 6 years. If her bank offers an annual compound interest rate of 2% with monthly compounding, how much should she deposit today?
- you need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer.You plan to buy property in Florida 8 years from today. To do this, you estimate that you will need $ 45000 at that time for the purchase. You would like to accumulate these funds by making equal annual deposits into your savings account, which pays 9% annually. If you make your first deposit at the end ofthis year, and you would like your accountto reach$ 45000 when the final deposit is made, what amount do you need to deposit annually?Ann would like to have $20,000 saved in 7 years from today and can earn 3.8% on deposits. She plans to make sporadic deposits of $2,000 one year from today, $2,500 3 years from today, $500 at year 7. She plans to make one additional payment 4 years from today. How much must she deposit in 4 years to meet her goal?