Future value.   Jack and Jill are saving for a rainy day and decide to put ​$70 away in their local bank every year for the next 25 years. The local​ Up-the-Hill Bank will pay them 10​% on their account.   a.  If Jack and Jill put the money in the account faithfully at the end of every​ year, how much will they have in it at the end of 25 ​years? b. ​ Unfortunately, Jack had an accident in which he sustained head injuries after only 10 years of savings. The medical bill has come to ​$1,000. Is there enough in the​ rainy-day fund to cover​ it? a. If Jack and Jill put the money in the account faithfully at the end of every​ year, how much will they have in it at the end of 25 ​years?   ​$nothing ​(Round to the nearest​ cent.) b.  How much will they have in the account at the end of 10 ​years?   ​$nothing ​(Round to the nearest​ cent.) Is there enough in the rainy day fund to cover the medical​ bill?  ​(Select the best​ response.)     A. There is not enough information to answer this question.   B. Yes.  They have enough money in the rainy day fund to cover the medical bill.   C. No.  They don't have enough money in the rainy day fund to cover the medical bill.

Suppose that your parents are willing to lend you $20,000 for part of the cost of your college education and living expenses. They want you to repay them the $20,000, without any interest, in a lump sum 15 years after you graduate, when they plan to retire and move. Meanwhile, you will be busy repaying federally guaranteed loans for the first 10 years after graduation. But you realize that you won’t be able to repay the lump sum without saving up. So you decide that you will put aside money in an interest-bearing account every month for the five years before the payment is due. You feel comfortable with putting aside $275 a month (the amount of the payment on your college loans, which will be paid off after 10 years). How high an annual nominal interest rate on savings do you need to accumulate the $20,000 in 60 months, if interest is compounded monthly? Enter into a spreadsheet the values d 5 275, r 5 0.05 (annual rate), and n 5 60, and the savings formula with r replaced by r/12 (the…

Mr. Mangano is considering taking early retirement, having saved $400,000. Mr. Mangano wishes to determine how many years the saving will last if he withdraws $60,000 per year at the end of each year. Mr.Mangano's savings can earn 10 percent per year.   11.67 years.     11.35 years     10.90 years     11.53 years.     12.01 years

A couple just got married and they are both 25 years of age. They each plan to retire in 40 years at the age of 65. They want to be able to receive $200,000 at the end of each year for 20 years, upon retirement(so their first retirement payment will be at 41)Currently they have a total of $2,000 in cash savings. How much must they save at the end of each year for the next 40 years so as to have enough money to achieve their current goal? Assume the interest rate is 8% and will remain the same. Also assume that they start saving at the end of the first year.

Suppose that you need $30,000 for your last year of college. You could go to a private lending institution and apply for a signature student loan; rates range from 7% to 14%. However, your Aunt Sally is willing to loan you the money from her retirement savings, with no repayment until after graduation. All she asks is that in the meantime you pay her each month the amount of interest that she would otherwise get on her savings (since she needs that to live on), which is 4%.What is your monthly payment to her, and how much interest will you pay her over the year (9 months)?(Fill in the blanks below and give your answers as whole numbers.)The amount of interest per month you would pay Aunt Sally is $__(1)__ .The total interest you will pay her over the year (9 months)is $__(2)__ .

Future value.   Jack and Jill are saving for a rainy day and decide to put ​$40 away in their local bank every year for the next 20 years. The local​ Up-the-Hill Bank will pay them 6​% on their account.   a.  If Jack and Jill put the money in the account faithfully at the end of every​ year, how much will they have in it at the end of 20 ​years? b. ​ Unfortunately, Jack had an accident in which he sustained head injuries after only 10 years of savings. The medical bill has come to ​$400. Is there enough in the​ rainy-day fund to cover​ it? a. If Jack and Jill put the money in the account faithfully at the end of every​ year, how much will they have in it at the end of 20 ​years?   ​$nothing ​(Round to the nearest​ cent.)