Ingrid wants to buy a $17,000 car in 8 years. How much money must she deposit at the end of each quarter in an account paying 5.3% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? (Do not round until the final answer. Then round to the nearest cent as needed.) ...

Ingrid wants to buy a $17,000 car in 8 years. How much money must she deposit at the end of each quarter in an account paying 5.3% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? (Do not round until the final answer. Then round to the nearest cent as needed.) ...

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $75,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? (Use the Table 15.1) Note: Do not round intermediate calculations. Round your answers to the nearest cent. a. 25 Years, 5.00% b. 25 Years, 5.50% c. 25 Years, 5.75% d. 25 Years, 6.00% Monthly payment Total cost of interest e. What is the savings in interest cost between 5.00% and 6.00%? Note: Round your answer to the nearest dollar amount. Interest cost
"Nathaniel is saving $172 per month. If their account earns a 2.5% interest rate, how many years will it take before they can buy a $28, 000 car? Enter your answer to two decimal places"
David is planning to buy a new car. Since David has not save any money, he plans to take out a loan to pay for the car. He is able to finance $43,950 with a 5 year loan. The loan has a APR of 3.25% compounded monthly. Round answers to two decimal places a. What is the minimum payment amount David will need to make for his car loan? b.How much will David pay altogether over the life of his car loan?
Suppose Lydia needs to borrow $24,200 for the purchase of a car and is considering two loan options. Loan A is a seven-year loan at 8.8% interest while loan B is a six-year loan at 8.3% interest.Determine the monthly payment required to repay Loan A and the total interest paid over the life of Loan A. Round solutions to the nearest cent, if necessary.The monthly payment for Loan A is $ Incorrect.The total interest paid for Loan A is $ Incorrect.Determine the monthly payment required to repay Loan B and the total interest paid over the life of Loan B. Round solutions to the nearest cent, if necessary.The monthly payment for Loan B is $ Incorrect.The total interest paid for Loan B is $ Incorrect.Determine the lower-cost option of the two loans. Loan A is the lower-cost option. Loan B is the lower cost option. Determine the amount of savings Lydia will experience if she chooses the lower-cost loan option.Savings = $
Peter has borrowed $8,600 to pay for his new car. The annual interest rate on the loan is 7.4 percent, and the loan needs to be repaid in four payments. What will be his annual payment if he begins his payment today now? (Round to the nearest dollar.) a. $2,850 b. $2,656 c. $2,385 d. $2,448
Heather is planning to retire in 14 years. She will then need an income of $1516 at the end of every month for the subsequent 25 years. She is going to make one investment today to provide all of the money she will eventually collect. Her investments will earn 8.30% compounded monthly. How much should she invest today? Round your answer to two decimal places. Do not enter the $ sign. Sample input: 124, 340.34
You need to have $18,000 to pay for your car in 7 years. How much do you need to deposit today in a bank that pays 5% interest, compounded annually, in order to achieve your goal?
Charlie Munger wants to save for a trip to Italy. He will need $18,108 at the end of 12 years. He can invest a certain amount at the beginning of each of the next 12 years in a bank account that will pay him 5 percent annually. How much will he have to invest annually to reach his target? (Round to the nearest two decimals. Do not type the $ symbol)
Emily is buying a new car for $1,700. The dealer is charging her an annual interest rate of 10.2%. If she pays off the loan in 24 months, what are her monthly payments? If she makes a down payment of $210, how much will her monthly payments be? Round to two decimal places. OA. $170.57; $74.75 B. $170.57; $10.54 C. $85.28; $74.75 O D. $145.28; $10.54
Sam Long anticipates he will need approximately $225,600 in 15 years to cover his 3-year-old daughter’s college bills for a 4-year degree. How much would he have to invest today at an interest rate of 6% compounded semiannually? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent.
Check My Work еВook Starting next year, you will need $20,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $20,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $20,000 payments. a. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent. $

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