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23. Mr. Smith plans to purchase a new $10 000 automobile. He wants to borrow all the money for the car, and repay it in equal monthly installments over a 4-year period. The nominal interest rate is 11% per year, compounded continuously. What will be Mr. Smith's monthly payment?
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- 11) Max purchases a lot for $300,000. Max will pay $25,000 dollars at the end of each year. the interest rate is 4% compounded annually, how many full payments must be made? a) what will be the size of the payment one year after the last full payment?An individual needs $12,000 immediately as a down payment on a new home. Suppose that he can borrow this money from his insurance company. He must repay the loan in equal payments every six months over the next eight years. The nominal interest rate being charged is 7% compounded continuously. What is the amount of each payment?6) A couple will need $50, 000 for a down payment on a home in eleven years. They plan to invest $8,000 up front and make a payment at the end of each month for the full eleven years. Assume the account earns 6.89% monthly. (a) How much will the initial deposit be worth in ten years? Round to two decimal places. (b) How much should the monthly payment be? Round to two decimal places.
- 1. Caroline wants to earn $500,000 at the end of eight years. How much must she deposit today to accomplish such goal, if the rate of interest is 8% compounded annually? 2. Suppose you make 20 annual payments of $2,000 each into an account that pays 5% interest. The first deposit will be made 1 year from today. How much money can be withdrawn from the account immediately after the 20th deposit?Suppose that Jacob would like to invest at the end of each month for the next 15 years into an account paying 6.72% compounded monthly in order to accumulate $10,000 at the end of that time? How much money must Jacob deposit into the account each month? How much interest will he have earned?An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per year (payable at the end of each year). He leaves the money and all accrued interest in the account for 7 years. How much will he have at the end of the 7 years? What is the future value in SEVEN years if you receive $300 in two years and $500 at the end of five years? Assume an annual compound rate of 8.5%. What is the value of $2000after one year, if bank compounding half yearly and offered rate is 10%? What is the value of $2000 after one year if bank compounding quarterly and offered rate is 10%? What is the value of $2000after one year if bank compounding monthly and offered rate is 10%?
- Larry wants to have $500,000.00 in 20 years. He found an annuity that is paying 3% with monthly compounding. Assume the interest rate remains the same while the account is open. Round all answers to the nearest cent. How much should be deposited each month? Monthly deposit He decides he can only afford $1,200.00 each month. How much will he deposit, in total? Total 24 What will the future account balance be? Future value 2$ How much interest, in total, will be earned? Interest Type here to search PrtScn FB Home F9 DII F6 F7 F3 F4 %23 24 & 4. 6. 7 8. 3. W E RAssume that you have purchased a new car and after your down payment, you borrowed $10,000 from a bank to pay for the car. Also assume that you have agreed to pay off this loan by making equal monthly payments for 4 years. Given that the annual interest rate is 11%, how much will be the payment each month? How much will be the payment if you want to pay all the rest of the loan at once at the beginning of third year?A man plans to take a vacation in 5 years. He wants to buy a certificate of deposit for $1300 that he will cash in for the trip. What is the minimum annual interest rate he must obtain on the certificate if he needs at least $1500 for the trip? Assume that the interest on the loan is computed using simple interest. The rate he must obtain is
- Tony has taken a $12,000 car loan. He wants to pay off this debt quickly, so he chooses to pay it in just two years. The loan has a 12% nominal interest rate, compounded quarterly.a. He will make quarterly payments. Draw the cash flow diagram. b. What is his quarterly payment?c. Complete the amortization table, showing the amounts for each payment, interest, and principal.Boris wants to save $27,000.00 for the down payment on a house. He already has $2,700.00, and he will make bi-weekly deposits for the next 2 years (at the end of each period). The interest rate is 1.225% compounded monthly. How much will the bi-weekly deposits be? a) This question deals with the value of an annuity b) There will be payments. The payment period is c) The payment amount is $ d) The effective interest rate per period is % e) The present/future value is $Jane wants to receive yearly payments of $15,000 for 10 years. How much must she deposit at her bank today at 11% interest compounded annually?