A family spends $40,000 on living expenses. With an annual inflation rate of 3 percent, they can expect to spend approximately _____________blank in one year.
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A family spends $40,000 on living expenses. With an annual inflation rate of 3 percent, they can expect to spend approximately _____________blank in one year.
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- A family is saving for their child's education. They want to have $80,000 eighteen years from now . a.) How much do they need to deposit each month into an account earning 7.2% interest compounded monthly? b.) What is the interest earned on the account?A family spends $30,000 a year for living expenses. If prices increase by 5 percent a year for the next three years, what amount will the family need for their living expenses after three years? A retired couple has a fixed income of $3900 per month. Assuming an annual inflation rate of 8% (compounded annually), what is the purchasing power (in dollars) of their monthly income in 5 years? (Round your answer to the nearest cent. )
- A retired couple plans to supplement their Social Security with interest earned by a $210,000 retirement fund. a. If the fund compounds interest monthly at an APR of 4.9%, which the couple takes out at the end of the year for spending in the next year, how much average interest is generated each month? b. Suppose the APR drops to 2.3%. What is the resulting average interest payment each month? c. Estimate the APR needed to generate $1100 each month in average interest. ret le ith?A family spends $46,000 a year for living expenses. If prices increase by 3 percent a year for the next three years, what amount will the family need for their living expenses after three years? (LO 1.1)New parents wish to save for their newborn's education and wish to have $47,000 at the end of 19 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 4.3% compounded annually? (Round your answers to two decimal places.)$ How much interest would they earn over the life of the account?$
- A married couple has $200,000 saved for retirement. They want to live on 65% of their $90,000 annual income. The amount of money the couple will live on annually in retirement is The additional amount of principal needed for retirement isSuppose a young couple deposits $700 at the end of each quarter in an account that earns 7.2%, compounded quarterly, for a period of 3 years. How much is in the account after the 3 years? (Round your answer to the nearest cent.) After the 3 years, they start a family and find they can contribute only $200 per quarter. If they leave the money from the first 3 years in the account and continue to contribute $200 at the end of each quarter for the next 18 1 2 years, how much will they have in the account (to help with their child's college expenses)? (Round your answer to the nearest cent.)Bill and Sally Kaplan have an annual spending plan that amounts to $40,000. If inflation is 4 percent a year for the next three years, what amount will the Kaplans need for their living expenses three years from now? Group of answer choices $44,100 $45,000 $43,264 $46,305 $46,794
- A recent college graduate's gift from her grandparents is $24,000. How much will this provide at the end of each month (in $) for the next 12 months while the graduate travels? Assume that money is worth 7.8% compounded monthly. (Round your answer to the nearest cent.)A man has children aged 12, 15, and 20. He purchases annuities for each one that pay 3,000 per year with the first payment happening one year from today and continuing as long as the recipient is under 30. The annual interest rate is 8%. What is the total cost of these annuities? Round to 2 decimal places.The Carp family makes a $30,000 down payment on a $150,000 home. They finance it for 15 years at 3 7/8%. If annual taxes are $2,970 and homeowners insurance is $940, what will their total PITI payment be?