ill need $15,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $15,000.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $15,000 payments. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $   How much will be in the account im

Q: You wish to have $10,000 on August 1, 2026.  You plan to to make monthly deposits into an account…

A: The question is based on the concept of Future value and annuity

Q: ou decide to make monthly deposits of $300.00 for 15 years into an account which pays 5% compounded…

A: 1.Future value of annuityFV = A * whereFV = future value of annuityA = periodic depositsr = interest…

Q: You have been accepted at University. You will need $15,000 every six months (beginning six months…

A: Compound = Semiannually = 2Payment = p = $15,000Interest Rate = r = 6 / 2 = 3%Time = t = 3 * 2 = 6

Q: You decide to open an individual retirement account (IRA) at your local bank that pays 8%/year…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Your birthday is next week and instead of other presents, your parents promised to give you $2,400…

A: The concept of time value of money will be used here.As per the concept of time value of money any…

Q: You need to borrow $12,000 to buy a car, so you visit two banks and are given two alternatives. The…

A: Loan is a contract between lender and borrower where lender provide funds to borrower which repaid…

Q: f. To help you reach your $1,000 goal, your father offers to give you $400 in one year. You will get…

A: The future value of an amount is the value of the investment after certain time period when invested…

Q: After graduation, you decide that you can pay $203.24 per month extra on your student loan (…

A: The objective of this question is to determine how many years early you will be able to pay off your…

Q: You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over…

A: Monthly Loan Payment = PV*(r*(1+r)n)((1+r)n-1)  where: PV is the present value of the loan r is the…

Q: To help you reach a $16,000 goal 8 years fromnow, your father offers to give you $4,000 now.You plan…

A: Steps to calculate annual deposits is shown: Calculate the FV of an amount given by the father at…

Q: You plan to buy a new car in three years and begin depositing $250 per month into a savings account…

A: Future Value (FV) is a financial concept that represents the projected worth of a sum of money at a…

Q: Beginning three months from now, you want to be able to withdraw $3,000 each quarter from your bank…

A: Present Value of Ordinary Annuity, the concept which dictates the present value of a sum of all cash…

Q: An annuity due typically has a higher present value than an ordinary annuity. • True O False

A: Since you have posted a question with multiple questions, we will solve the first question for you.…

Q: You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over…

A: A loan is an agreement between two parties where an amount is forwarded in exchange for a promise of…

Q: A student plan to deposit $2,000 in the bank now and another $4,000 for the next 3 years. If he…

A: Effective interest rate is 8% Amount deposited now is $2,000 Amount deposited for next three years…

Q: A student plans to deposit P1,750 in the bank now and another P3,050 after 2 years. If he plans to…

A: Deposit now = P 1750 Deposit after 2 years = P 3050 Withdraw after 5 year (3 Years after last…

Q: Beginning three months from now, you want to be able to withdraw $3,100 each quarter from your bank…

A: Present value refers to an amount that is required to meet the requirements in the future. It is…

Q: You have a loan outstanding requires making four annual payments of $5,000 each at the end on leu of…

A: Loans are paid by equal annual payments and these payments carry payment for interest and payment…

Q: You want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over…

A: Given: Loan Amount $10,000Annual Nominal Interest Rate 9%Number of Payments = 5 years * 12 months60…

Q: Suppose you borrow money from your parents for college tuition on January​ 1, 2019. Your parents…

A: The cost of college tuition fees would be equal to the present value of all future payments.

Q: Suppose you start saving today for a $50,000 down payment that you plan to make on a house in 5…

A: Down payment = $50,000Interest rate = 6% (Daily compounding)Number of years = 5 years

Q: January 1, 2022, you open a checking account with the same bank that you have your savings account.…

A: Applicable interest rate is 0.02% Bi monthly deposits are of $25 Time period is 1 year To Find:…

Q: Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year…

A: An annuity is a method of fulfilling a financial goal for a specified period of time at a defined…

Q: Beginning three months from now, you want to be able to withdraw $3,800 each quarter from your bank…

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

Q: A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that…

A: To calculate the simple interest rate we will use the below formula   Interest rate = [(A-P)/P]/T…

Q: Tony Ring wants to attend Northeast College. He will need $75,000 4 years from today. Assume Tony's…

A: Present value refers to the money present today is more valuable than the money will receive in…

Q: You finance your college education with a student loan. Every month, you borrow $1,000 to pay for…

A: Future value of annuity is computed as follows:-FV = A*whereFV= future value of annuityA= periodic…

Q: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6.…

A: Answer: Calculation of the amount that will be available to withdraw at the end of year 15: The…

Q: You have just entered college and have decided to pay for your living expenses using a credit card…

A: Solution: An equal amount paid each period is known as annuity. Future value of annuity = PMT x…

Q: Your bank pays 8.50 percent annual interest compounded semiannually on your savings account. You…

A: Future Value = Present Value * (1+rate)^ n Where, Present Value = $2,500 Rate = 8.5%/2 =4.25%…

Q: You have just entered college and have decided to pay for your living expenses using a credit card…

A: Future Value is defined as the current asset value at the date of the future on the basis of the…

Q: Calculate your monthly payment. Round your answer to the nearest cent.

A: Loan Payments: These are payments made by the borrower to amortize the loan value. This is done by…

Q: y a new car in three years and begin depositing $250 per month into a savings account that earns…

A: Future Value (FV) is a financial concept that represents the projected worth of a sum of money at a…

Q: You have a balance of $5,000 on your credit card.  The interest rate is 15% per year.  You want to…

A: Balance in credit card = $5,000 Interest Rate(r) = 15%/12= 1.25% per month Years = 4 Terms(n) = 4*12…

Q: You decide that you need $47,000 in 3 years to make a down payment on a house. You plan to make…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over…

A: Monthly loan payment can be calculated by using excel function of PMT-Excel function of PMT…

Q: A man borrows $60,000 to help pay for his college expenses.  He intends to pay off the loan with…

A: Monthly payment is refer as the regualr amount of fund or payments at monthly time interval. It is…

Q: 2. Remi deposits $2,000 into a savings account at her bank. If the interest rate is 3.25 percent,…

A: Deposit = 2000 Interest rate = 3.25℅ N = 5

Q: You plan to spend $400 to buy a new IPAD at the beginning of year3 and $1,000 to buy a new phone at…

A: The objective of this question is to calculate the amount of money that needs to be saved each year…

Q: You want to save for a new car so you make payments of $573 at the end of every month into the bank.…

A: Monthly Payment = mp = $573Annual Payment = ap = $1620Number of Monthly Payment = mn = 7 * 12 =…

Q: Samantha wants to be able to withdraw $530 at the end of each month for two years while she travels,…

A: Here, Investment Amount (PV) is $10,300 Interest Rate earned on Investment Amount (Rate) is 4.54%…

Q: You have a balance of $9700 for your tuition on your American Express credit card. Assume that you…

A: Here,Balance of the card is $9700APR is 13%Minimum Payment is 4%

Q: Find the monthly payment

A: Introduction: The term loan refers to the amount which is provided by an individual or any financial…

Q: A student wants to save for her retirement. At the end of every year, she deposits 475 in a…

A: Annual Deposit = a = 475Rate of Return = r = 4.3%Time = t = 30 Years

Q: Beginning three months from now, you want to be able to withdraw $2,700 each quarter from your bank…

A: Present value is a financial concept used to determine the current worth of a future sum of money,…