Jamilah and Alexis have $500 to invest. The bank offers an interest rate of 6% compounded annually.   a) How much money will they have after 1 year? b) How much money will they have after 5 years

Q: Ayesha wants to deposit 300 per year in a bank for the next 10 years. The bank pays annual interest…

A: Future value refers to the worth of the amount which is invested today at some future specified date…

Q: Gabby is planning to buy a home.  She has some money for a down payment already saved.  She sees a…

A: Monthly payment on the borrowing is calculated using following equation Monthly payment =…

Q: Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Tony Ring wants to attend Northeast College. He will need $50,000 6 years from today. Assume Tony's…

A: We need to use compound interest formula below to calculate principal deposit today to get desired…

Q: Bonnie and Claude want to buy a house. They can afford monthly payments of $1125.00. The bank offers…

A: The maximum amount that the bank will lend will be the present value of the monthly payments that…

Q: Gabby is planning to buy a home.  She has some money for a down payment already saved.  She sees a…

A: Step 1). Monthly payment on the borrowing is calculated using following equation Monthly payment =…

Q: A bank offers a savings account with a 3% annual interest rate, compounded monthly. Sars wants to…

A: The objective of the question is to find out how much money Sara needs to deposit now in order to…

Q: Which alternative should be selected? Choose the correct answer below.

A: Net Present Worth: It is the present worth of the annual cash inflows and annual cash outflows…

Q: If Laura invests $1,230.00 in an account earning 2.95% simple interest, how much money will be her…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each…

A: Future Value = $22,000 Time Period = 6 Years Interest Rate = 5.8%

Q: Inez wants to borrow $2100 to start a small business.  She has found a bank that offers a 7% add on…

A: Calculation of Monthly Payment:The monthly payment is $47.25.Excel Spreadsheet:

Q: Emilia and Liam are purchasing a home. They wish to save money for 10 years and purchase a house…

A: Compounded monthly means that the interest on the savings or investment account is calculated and…

Q: (b) Aminah plans to buy a house in Shah Alam which the market price is RM450,000. To buy the house,…

A: The amount to be deposited each year is known as an annuity. It refers to the equal payments made at…

Q: A newly wedded couple is planning to buy a two bedroom apartment in Windhoek for N$280000. He is…

A: The objective of the question is to calculate the total amount to be paid to the bank, the monthly…

Q: To help with a down payment on a home, Jenny is going to invest. Assuming an interest rate of 1.67%…

A: Using excel PV function

Q: The MacEacherns wish to buy a new house that costs $279,000. The bank charges 5.25% interest. A)…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Caitlyin is saving to buy a house.She plans to deposit $12, 000into her account today and 1year from…

A: The objective of the question is to calculate the total amount of money Caitlyin will have in her…

Q: Helen can earn 3% interest in her savings account. Her daughter Roberta is 11 years old today.…

A: The future value of deposit is the value of the current deposits on a future date based on the time…

Q: Jasmine invested a certain amount in a bank compounded semi-anually. The bank told her that the…

A: First  we need to calculate the interest rate. Given,  Amount will be doubled in 5 years and it is…

Q: Sonia buys a house for $250,000. she makes a down payment of 15% of the purchase price and takes a…

A: Cost of house = $ 250,000 Down payment = 15%

Q: Suppose Nicole deposits $50,000 in an account that pays 9% compounded annually. How long does it…

A: Given data; Present value = $50,000 interest rate =9% future value = $ 125,000

Q: Leon wants to save a classic car so he deposits $1500 at the end of the years into a savings account…

A: We need to use future value of ordinary annuity formula to calculate worth of deposit after 5 years.…

Q: sandra and cindy both invest $14,000 into savings accounts that earn simple interest if sandras…

A: Simple interest formula = A = P (1+rt) Where, A = Final amount i.e. Principal + Interest P =…

Q: Jeanette took out a loan from the bank today for X. She plans to repay this loan by making payments…

A: Present Value refers to the current value of the loan or mortgage amount if paid all at once on the…

Q: At an interest rate of 7 - %, Karen borrows $4,000 for 13 years. How much interest will she pay?

A: Concept: The interest is the product of principal, time period and number of years that is divided…

Q: Ingrid wants to buy a $16,000 car in 8 years. How much money must she deposit at the end of each…

A: Solution:-When an equal amount is deposited each period at end of period, it is called ordinary…

Q: Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle…

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

Q: Jacob has 5000 dollars and wants to earn 6500 dollars from the bank. If the bank gives a compound…

A: It will take 6.69 years for Jacob to reach 6500 dollars

Q: Manuel and Aponi want to buy a $221,000 home. They plan to pay 20% as a down payment, and take out a…

A: A mortgage is a loan that is taken out with the intent to purchase a property. The property in…

Q: Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out…

A: Cost of House is $250,000 Down payment is 15% Term of loan is 30 years Interest rate is 4.9% To…

Q: Michaela buys a new car for $31,600. The simple interest rate is 5.6% and the amount of loan…

A: In simple interest there is interest on the principal amount only and no interest on interest in…

Q: Michelle wants to borrow $4,500. Bank A will lend Michelle the money at a simple annual interest…

A: Formula: Interest amount = PTR / 100 P = Principal  T = Time period R = Rate of interest.

Q: Beatrice takes out a 7 year loan of $5000. The interest rate is 4.5%. What are Beatrice's monthly…

A: In order to find the monthly payment one can use excel and in excel use PMT function.

Q: Tina deposited $20 in a savings account earning 5% interest, compounded annually. To the nearest…

A: Interest is the amount charged or received for loan taken or investment made. There can be simple…

Q: Calculate the amount of money that must be saved at this time.

A: Formula for present value annuity is; PV = FV/(1+(r/n))nt Where as, PV = Present value FV = Future…

Q: additional deposits or withdrawals for the accounts. Which statement is true concerning Sebastian’s…

A: the correct option is (c)

Q: Ciana wants to take out a $7,500 loan with a 5.3% APR. She can afford to pay $128 per month for loan…

A: The given payments are a form of annuity wherein an equal payment is made at eqaul intervals. The…

Q: Alien Jackson has $2,000 on her credit card which charges a 23% interest rate. If she wants to pay…

A: It is a case of amortization of a loan that is to be paid in 4 years on a monthly basis. To repay…

Q: A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 2…

A: A concept that implies the future worth of the money is lower than its current value due to several…