la and Ashton plan to save money for their wedding over a 20-month period. They will need to save S8,000 to help pay for the wedding. They set aside the same amount each month. After a year they saved $4,000. Mila and Ashton know they must adjust their plan in order to meet their goal, so they came up with the following options: Option A; Stay with saving the same amount they've been saving each month but postpone the wedding 2 months. Option B: Increase the amount of money they save each month by $80 from what they've been saving. Which of the following is a true statement? a. Saving by either option A or option B will allow them to meet their goal. b. Only option B will allow them to meet their goal C. Only option A will allow them to meet their goal d. Neither option A nor option B will allow them to meet thei

Amanda and Zack are saving for their first child. They know he/she will be expensive and would like an extra $5000 in the bank when the baby comes. Amanda and Zack are not planning to have a baby for at least 3 years. They found a savings account that will earn 4.7% interest compounded quarterly. How much money should they invest to be financially prepared for their first child? Round to the nearest dollar.

Aya and Sakura would like to buy a house and their dream home costs $500,000.  Their goal is then to save $50,000 for a down payment and then would take out a mortgage loan for the rest.  They plan to put their monthly saved amount in a conservative mutual fund that has a track record of a 4.25% rate of return, compounded quarterly.  To be sure they don’t go spending this money on other things, they are going to move it into their investment account at the beginning of each month.  Their hope is to be able to buy this home in 7 years.  Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to cover the rest.  For the home they want this will require a mortgage of $450,000 to cover the remaining amount and they’re not sure whether they could afford the monthly loan payments.  The bank has offered them a mortgage interest rate of 5.15%, compounded semi-annually.   how much would they have to be able to afford to pay each month in order to pay off…

Tina Parker, a single mother, is 20 years old. She has called on you for an insurance consultation. Her objective is to purchase life insurance protection for the next 10 years while her children are growing up. Tina tells you that she can afford about $250 per year for insurance premiums. You have suggested either a 10-year term policy or a whole life policy. Rounded to the nearest thousand, how much insurance coverage can Tina purchase under each policy? Hint: Divide her annual premium allowance by the rate per $1,000 for each policy. If she should die in the next 10 years, how much more will her children receive under the term insurance? If she should live beyond the 10th year, what are her nonforfeiture options with the whole life policy?

Two friends, Alysha and Betty, are planning for their retirement. Both are 20 years old and plan on retiring in 40 years with $1,000,000 each. Betty plans on making annual deposits beginning in one year (total of 40 deposits) while Alysha plans on waiting and then depositing twice as much as Betty deposits. If both can earn 4.20 percent per year, how long can Alysha wait before she has to start making her deposits? (Round answer to 2 decimal places, e.g. 125. Do not round your intermediate calculations.) Alysha can wait for years

Kirk Van Houten, who has been married for 23 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring will be $10 comma 000 in 7 years. Kirk currently has $4 comma 524 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?