I now have $20,000 in the bank earning interest of .5% per month. I need $30,000 to make a down payment on a house. I can save an additional $100 per month. How long will it take me to accumulate the $30,000? (Round your answer to 2 decimal places.)

Q: You need $82,000 in 12 years. If you can earn .49 percent per month, how much will you have to…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: You are saving for a new house. You place $47,000 into an investment account at the end of each year…

A: Future value of annuity payment is the value of recurring payments at a future date considering a…

Q: ose you deposit $100,000 in an account today that pays 6% interest, comp ally. How long does it take…

A: The given problem can be solved using NPER function in excel. NPER function computes no. of years/…

Q: How much would you need to deposit in an account each month in order to have $50,000 in the account…

A: Given: Future value = $50,000 Time =8 years Monthly period = 8*12 = 96 Interest = 4.5% So, monthly…

Q: You want to be able to withdraw $3,500 each month for 20 years. Your account earns 10% interest. How…

A: Present value of annuity is the value of recurring regular interval future cashflow discounted to…

Q: You have 45,589.25 in a brokerage and you to deposit an additional 5,000 at the end of every future…

A: Time value of money concept will be applied here. Money deposited in an account grows as the amount…

Q: the amount you need to save each month

A: given   fv=25000 n= 5*12=60 interest i = 3.5% PMT =?

Q: You would like to have $600,000 when you retire in 40 years. How much should you invest each quarter…

A: Here, To Find: Part a). Amount of deposit each quarter =? Part b). Total money deposited into the…

Q: You are saving for a new car. You place $15,400 into an investment account today. How much will you…

A: Present Value (PV) of amount invested = $15,400Interest rate (r) = 2%, 4%, 6% or 0.02, 0.04,…

Q: I now have $23,000 in the bank earning interest of 0.50% per month. I need $33,000 to make a down…

A: Future value of the amount is the amount being deposited and amount of interest accumulated on…

Q: How much must you deposit into an account today so that you can have $25,000 in twelve years? Assume…

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: you deposit money today in an account that pays 13.5% annual interest, how long will it take to…

A: Future value = Present value x (1+i)^twherePresent value = amount deposited today = $1…

Q: I now have $30,000 in the bank earning interest of 0.75% per month. I need $40,000 to make a down…

A: Compound = Monthly = 12Present Value = pv = $30,000Monthly Interest Rate = rate = 0.75%Future Value…

Q: ch month, what type of interest you need to ensure that you have enough money? 4. You…

A: Value of money changes with time and is not constant and money today will not be same money tomorrow…

Q: A) calculate the amount of money you will have after 25 years if you deposit $150 each month in an…

A: Monthly deposit: Monthly deposits are instructions to the bank or financial institution to take a…

Q: 15. If the amount required is $10,000 after 5 years at 3% compounded monthly, what is the monthly…

A: Inorder to accumulate a given amount of money or equivalent to the given present value, periodic…

Q: How much would you need to deposit in an account each month in order to have $10,000 in the account…

A: formula to be used = Future value=PMT(1+r/n)n*t-1)/r/n   PMT= Monthly payment R= interest rate N=…

Q: How much money would you need to place in an account to have $1,000 10 years from today? Assume the…

A: The formula used as follows: Present value=Future value1+innt

Q: If you save $5 per day in an account that earns 4.5% interest per year, how long will it take for…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: You have $5,340.25 in your savings account today. Every two weeks (26 times a year) $200 will be…

A: A savings account is a deposit account that pays interest and is kept at a bank or other financial…

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…

A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…

Q: 2. If you deposit $2500 two years from now in a bank account that pays 4% compounded annually, how…

A: The amount that is deposited today will be more in dollar terms at certain future date due to the…

Q: (2) Jack has deposited P1,000 into a savings account. He wants to withdraw it when it has grown to P…

A: Future value = Present Value* (1+Rate of Interest)t Here t is the time period or we can also say…

Q: You are saving for a new house and you put $10,000 per year in an account paying 8%. The first…

A: Annual deposit (D) = $10,000 Interest rate (r) = 8% Number of deposits (n) = 3

Q: You put $6,150 in the bank for 15 years at 5%. Using the Future Value of 1 Table, what factor would…

A: Future Value is known as Terminal Value. The accrued amount of FVn  on principal amount after n…

Q: You would like to have $700,000 when you retire in 40 years. How much should you invest each quarter…

A: Required future Value "FV" is $700,000 Time period of retirement = 40 years Interest rate is 4%…

Q: You have saved $22,000 for a down payment on a house. Your bank requires a minimum down payment of…

A: Down payment amount = $22,000 Down payment ratio = 11%

Q: 1. If you deposit $28,688 annually at the end of every year in a bank account paying 5% annually,…

A:

Q: You are saving for a new house. You place $40,000 into an investment account each year for five…

A: Future value refers to the monetary worth of an investment or cash flow at a future date, assuming…

Q: 6. You are hoping to put down $3000 on a car in 2 years. If the bank pays 4% interest, compounded…

A: Future value required (FV) = $3000 Period =  2 Years Number of monthly deposits (n) = 2*12 = 24…

Q: You're trying to save to buy a new $141,720 Mercedes. You have $74,461 today that can be invested at…

A: Time, the value of money refers to the concept used for evaluating the percentage of return from the…

Q: If you earn 5% per year on your bank account, how long will it take an account with $110 to double…

A: The present value is the present worth of the amount that is paid or received in the future.

Q: If you put $259 into a bank account that pays 3.5% interest, compounded 9 times per year, how much…

A: Workings:

Q: What is the maximum price you can offer for a home in order to have enough money for the down…

A: Information Provided: Amount saved (down payment) = $18,000 Down Payment = 11%

Q: Suppose you invest $160 a month for 6 years into an account earning 6% compounded monthly. After 6…

A: The future value (FV) formula is used in finance to calculate the future value of an investment.This…

Q: Suppose you invest $200 a month for 6 years into an account earning 9% compounded monthly. After 6…

A: Time Value of Money states that a dollar is worth more today than anytime in the future because they…

Q: 2) You wish to save $150,000 for a new car. You are going to make $5000 deposits at the end of each…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: If you deposit money today in an account that pays 12.5% annual interest, how long will it take to…

A: The rate of interest is 12.5% Assume, The present value is $1. The future value is $2 as the amounts…

Q: .  You invest some amount today for two years that pays 6% annually. The bank compounds annually. At…

A: Solution:- When some amount is invested somewhere, it earns interest on it. The amount invested…

Q: You want to be able to withdraw $4500 from an account at the end of each 6-month period (that is,…

A: Using Excel PV function

Q: Suppose you deposit $20,000 in an account today that pays 4% interest, compounded annually. How long…

A: Here, 20,000 is deposited today and future value is $80,000. Want to calculate how many years it…

Q: You would like to put some money into an account so that you will have $6000 in the account 13 years…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: Nathaniel is saving $172 per month. If their account earns a 2.5% interest rate, how many years will…

A: This is based on the concept of time value of money. As per the concept of time value of money the…