Tony Ring wants to attend Northeast College. He will need $50,000 6 years from today. Assume Tony's bank pays 6% interestcompounded semiannually.What must Tony deposit today so he will have $50,000 in 6 years? (Do not round intermediate calculations. Round your answer tothe nearest cent.)Amount to be deposited

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

Answered: Tony Ring wants to attend Northeast…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 2STP

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Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
Tony Ring wants to attend Northeast College. He will need $65,000 4 years from today. Assume Tony's bank pays 12% interest compounded semiannually. What must Tony deposit today so he will have $65,000 in 4 years? (Use the Table 12.3 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount.
Can you please help me work out this problem in detail? Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 6% interest compounded semiannually. What must he deposit today so he will have $60,000 in 4 years?
Tony Ring wants to attend Northeast College. He will need $66,000, 4 years from today. Assume Tony's bank pays 12% interest compounded semiannually. What must he deposit today so he will have $66,000 in 4 years?
A college student, needs to borrow $5,000 today for his tuition bill. He agrees to pay back the loan in a lump-sum payment 5 years from now, after he is out of college. The bank states that the payment will need to be $7,012.76. If John borrows the $5,000 from the bank, what nominal interest rate is he paying on his loan? O 7.5% O 7% O 7.25% O 8%
Tony Ring wants to attend Northeast College. If he deposits $52,087 today, how much will he have 5 years from now at 6% interest compounded semiannually? (Use the Table 12.1 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Amount
Joe Beary wants to attend Riverside College. Eight years from today he will need $50,000. If Joe’s bank pays 6% interest compounded semiannually, what must Joe deposit today to have $50,000 in 8 years? (Round your answer to the nearest cent.)
Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today . Assume Tony's bank pays 12% interest compounded semiannually. What must Tony deposit today so he will have $60.000 in 4 years?
Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 12% interest compounded semiannually.What must Tony deposit today so he will have $60,000 in 4 years?
Maria wants to attend Clarke University. She will need $90,000 eight years from today. Assume Maria's bank pays 6% interest compounded semiannually. What must Maria deposit today to have $90,000 in eight years? verify your answer.
Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $5,000 payments. 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.
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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