2 You decide to get ahead and start saving for your first condo after college. You estimate your dream condo is going to be $250,000 in 5 years once you graduate and get your job. You decide to put in annual payments on January 1st of every year into an investment account that pays 7.5% interest. How much will your annual payments need to be so you can pay for your condo in cash? (Round to the nearest dollar) $40.038 $39.59096 $43041 $42,904

2 You decide to get ahead and start saving for your first condo after college. You estimate your dream condo is going to be $250,000 in 5 years once you graduate and get your job. You decide to put in annual payments on January 1st of every year into an investment account that pays 7.5% interest. How much will your annual payments need to be so you can pay for your condo in cash? (Round to the nearest dollar) $40.038 $39.59096 $43041 $42,904

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Vijay
Your neighbour makes you the following offer. He would like to borrow $10,000 today. He will repay the $10,000 by making 10 yearly payments with the first payment being made at the end of this year. If the payments are to grow by 10% each year and the appropriate discount rate is 12%, how much will your neighbour have to pay at the end of the first year? $1,212.97 $108.98 $1,867,94 $1,627.45 x
You give up a full-time salary of $45,000 a year to go to school for 2 years. The total cost of going to school is $30,000. If you want to be able to recover your investment in 5 years or less, what is the minimum salary you would need to earn upon earning your degree? a $51.000 b. $60.000 C $69,000 d $75.000
You are saving for a fabulous vacation to your favorite tropical destination. You intend to travel in 4 years. You think you can earn 5.3% on your investment. How much do you need to deposit today to have $5,500 to bring you and a guest on vacation in four years? -$19,367.58 O-$4,473.52 O-$6,762.02 -$5,050.30
You decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make annual fixed deposits to achieve your goal. If the interest rate is 2.5%, how much should be deposited each time? Hint use the Financial Function “PMT” to solve for the payment, and PV will be zero. You owe $25,000 to your parents. You promise to make 10 annual payments of $3,000 to settle your debt. What interest rate are your parents charging (estimated up to 2 decimal places), if you make the 10 annual payments beginning one year from now? Hint use the Financial Function “RATE”. Note if you need help use the “Help on this function” feature. This help will include an example for you to follow. You are offered an investment that will pay $14,000 per year for 17 years, beginning one year from now. If you feel that the appropriate discount rate is 3.4%, what is the investment worth to you today? Your grandparents offered you some money via the following options. Assuming an annual interest…
2
Nikul
Q19: You want to save for a down payment on a new home in the future. You can invest $225 at the end of each month, and you expect to earn 6% APR compounded monthly on your investment. How much will you be able to have saved in 5 years?
Suppose you want to buy a $141,000 home. You found a bank that offers a 30-year loan at 3.7% APR. What will be your monthly payment? (Round to the nearest cent.) 2$ How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) 2$ Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) $4 How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) $ How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.)
Raghubhai
Find the payment Thomas has started working, and he is wondering how much he needs to put aside every month to purchase a TV IN 2 YEARS. Thomas needs exactly $3,275 to purchase a new TV. The money he puts aside he will earn interest every month. The interest is compounded monthly.\ The annual interest is 6% $0 24 Principal Present Value: Value of the money she invested today Payment: how much will paid per month Interest Rate Periods Number Annual Rate of times ? interest is calculated 3,275.00 Value of Investment 3,275.00 Future Value
You want to buy a new ski boat 2 years from now, and you plan to save $7,300 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the 2nd deposit, 2 years from now? a. $14,979.60 b. $23, 058.54 c. $8,122.81 d. $15,758.54 e. $15,359.20

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