Future value: Your birthday is next week and instead of other presents, your parents promised to give you $1,000 in cash. Since you have a part-time job and, thus, don't need the cash immediately, you decide to invest the money in a bank CD that pays 5.2 percent, compounded quarterly, for the next two years. How much money can you expect to earn in this period of time?
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- You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 6% per year and you think you will need to have $8,000 saved for the down payment. How long will it be before the $4,000 has grown to $8,000 ? To double the money you received from your grandparents, it will take years. (Round to one decimal place.)You want to have $35,000 in cash to buy a car 3 years from today. You expect to earn 3.6 percent, compounded annually, on your savings. How much do you need to deposit today if this is the only money you save for this purpose? Can the excel and calculator solution be provided?Suppose you decide to wait 5 years to save up before buying the house. You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank. Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly payments. Answer the following questions about this loan. After making 240 monthly payments, how much of what you paid the bank was interest? $ . ROUND TO THE NEAREST CENT. THANKS APPRECIATE THE HELP!!!
- You receive a $3,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 8% per year an you think you will need to have $6,000 saved for the down payment. How long will it be before the $3,000 has grown to $6,000 ?. Suppose you want to buy a home after 3 years and you will need $15,000 for that. You open a savings account and deposit a lump sum amount of $2,000. You want to make a monthly payment at an interest rate of 4.5%. What should be the constant monthly payment you should make to reach the goal of $15,000 after 3 years? Explain in excelYou receive a $10,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 10% per year and you think you will need to have $20,000 saved for the down payment. How long will it be before the $10,000 has grown to $20,000? To double the money you received from your grandparents, it will take years. (Round to two decimal places.)
- Your birthday is next week and instead of other presents, your parents promised to give you $1,300 in cash. Since you have a part-time job and, thus, don't need the cash immediately, you decide to invest the money in a bank CD that pays 5.40 percent, compounded quarterly, for the next two years. How much money can you expect to earn in this period of time? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny) Value of investment after 2 years $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…A) calculate the amount of money you will have after 25 years if you deposit $150 each month in an account that earns an annual rate of 7%. Round to the nearest cent, if necessary. Excel Formula: Your answer: B.) How much more did you save compared with just sticking the moey in a safe at home each month?
- Suppose that you are saving for college for a child. That child was just born and you will have to make 4 equal tuition payments over a four year period with the first occurring in exactly 18 years. Each successive tuition payment is made exactly a year after the prior payment. You also plan on buying this child a car in exactly 15 years using this same savings. You will pay $30,000 at that time for the car. You will be depositing money every year with the first check deposited into savings today and the last one the day the first tuition check is due. If you want to be able to pay $65,000 each year for tuition, how much do you have to save per year? Assume the discount rate is 10 percent per year.You are planning for your child's future and would like to set up a savings account for their college tuition. You suspect that you don't want to make a lump sum, so you decide to make equal monthly deposits. After calculating, you plan to have $100,000 in the account in 18 years. You found an account that gives 2% APR compounded monthly. Find the amount of your monthly deposits needed to obtain your projected future value.If this family of 4 wants to save up for a vacation in 2 years, how much should they deposit each month into a savings account earning 1.85% annual interest? iF THEY HAVE TO SAVE UP $4580 (Round your answer to the nearest DOLLAR and type it without any commas, dollar signs, ect) If instead they decide to take the vacation now and put it on a credit card, how much would they need to pay each month to cover the cost of this credit card charge after 2 years if their credit card charges an APR of 19% (which is the average APR for new credit cards currently)? (Round your answer to the nearest DOLLAR and type it without any commas, dollar signs, ect) $ How much more will this family pay for their vacation using their credit card instead of saving?