You need $73,061 in eight years if you can earn a 0.39% per month. How much will you have to deposit today in dollars 

Q: You want to have $19, 500 in 6 years for a dream vacation. If you can earn an interest rate of .2…

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: You have $2,000 on a credit card that charges a 21% interest rate. If you want to pay off the credit…

A: Monthly payment is a fixed periodic payment which is made by a borrower to the lender.

Q: account

A: Introduction: Investments are made by depositing a certain sum of money in the account. At the end…

Q: You have $4,500 on a credit card that charges a 15% interest rate. If you want to pay off the card…

A: Installment is the amount of periodic payment a borrower has to make to its lender in order to pay…

Q: You want to have $1 million to use for retirement in 35 years. If you can earn 1% per month, how…

A: Future Value (FV) of amount required = $1 million or $1,000,000Monthly interest rate (r) = 1% or…

Q: year, to make a down payment of $75,752 on a vacation home If you can earn 3.03 percent on your…

A: The future value idea is a useful tool for investors to compare various investment prospects.…

Q: Suppose you put $ 500 a month for retirement into an annuity earning 5.25% compounded monthly. If…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: need $20,000 five years from now. The account pays 9% compounded annually. If you will receive…

A: Present value is the equivalent value today of the future cash flow based on the time and interest…

Q: You expect to need $1500 in 3 years.  Your bank offers 4% compounded semi-annually.  How much money…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: You need $24787 in 5 years.  If you think you could earn an annual rate of 12.35%, what would be…

A: The concept of time value of money states that the money received today is worth more than that the…

Q: You are trying to save up for a downpayment on a home and you need $55, 000 to cover closing costs…

A: Future value=$55000Monthly payment=$975 Interest rate=7.65%Monthly rate=7.65/12= 0.6375Future value=…

Q: You wish to have $15,000 dollars in 4 years. How much do you need to deposit today if the rate is…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: You want to buy a $23,000 car. You can make a 10% down payment, and will finance the balance with a…

A: A loan refers to a contract between a borrower and a lender where a sum is exchanged on the promise…

Q: You need $30000 in cash to buy a car 15 years from today. You expect to earn 14 percent, compounded…

A: Future value is important to both investors and financial planners because it helps them to predict…

Q: A year from now, you wish to buy a scooter motorcycle with a projected cost of Php70,000. To save up…

A: PMT is the periodic installment.

Q: Suppose that each week, you deposit $28 into a savings account whose annual rate is 1.6% with weekly…

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

Q: Your goal is to save up $30,000 to use as a future down payment. If you save $4,596 every year in an…

A: Here,RequiredAmount (FV) is $30,000Yearly Savings (PMT) is $4,596Interest Rate (Rate) is 3%

Q: You currently have $2,320.00 in a retirement Savings account that earns an annual return of 7.59%.…

A: The objective of the question is to find out how much more money needs to be saved annually to reach…

Q: You need to have $33,500 in 14 years. You can earn an annual interest rate of 5 percent for the…

A: The deposit amount today is calculated as the present value of required amount in future. Present…

Q: At your new job, you will be making monthly deposits of  $285 into a 401k.  If you think that you…

A: Data given: Monthly deposit=$285 N=6 years Rate=13.57%   Required: Amount in 6 years

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…

A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…

Q: the moment you don't have any money saved for retirement, but have resolved to start making $491…

A: The concept of annuity  is an important part in investing .It is the regular payment done in order…

Q: You need $34877 in 6 years.  If you think you could earn an annual rate of 11.77%, what would be…

A: A monthly deposit refers to an amount that is to be deposited each month for the purpose of savings…

Q: You currently have $250,000 in your retirement account. What equal annual amount can you withe each…

A: We will have to use the concept of time value of money to solve this.

Q: You wish to have $40,000 dollars in 6 years. How much do you need to deposit today if the rate is…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: You will invest $200 per year. You will make your first deposit today. If the rate is 8.73%, how…

A: Annuity refers to a stream of fixed cash flows occurring in each period. For instance a cash flow of…

Q: Your plan is to have $40,000 in your account, 13 years from today. You can invest in an account that…

A: Future value required (FV) $40,000 Interest rate = 8.05% Monthly interest rate (r) = 8.05%/12 =…

Q: You plan to buy a house in three years and would like to put $100,000 down at the time of buying.…

A: The concept of money's time worth reveals that any sum today is worth more as compared to what it…

Q: much will you be able to withdraw weekly

A: Weekly withdrawal refers to the amount that is cashed in at regular intervals until the deposited…

Q: If you borrow $24398 with an annual rate of 9% compounded monthly and make a payment of $282 every…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Suppose you put $ 450 a month for retirement into an annuity earning 4.25% compounded monthly. If…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: You would like to have $78,000 in 12 years. To accumulate this amount, you plan to deposit an equal…

A:

Q: You want to be able to withdraw $50,000 each year for 25 years. Your account earns 9% interest. a)…

A: An annuity is a payment series that provides its holder with a periodic amount in exchange for a…

Q: How much should you deposit into an account that pays 3.6% compounded monthly if you want to have…

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: deposit P5,000 at the beginning of every year into an investment which earns 16% interest per year…

A: Solved using Financial Calculator  (i) Amount at the end of 4th Year SET BGN Mode in Calculator.…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: the monthly loan amount will be                                    = p*[ r(1+r)n/(1+r)n-1]…

Q: You need to have $30,750 in 11 years. You can earn an annual interest rate of 6 percent for the…

A: To calculate the deposit amount we will use the below formula   Deposit amount =…

Q: you deposit $3000 today in an account earning 3.5% annual interst and keep it for 10 years. In 10…

A: Total amount present in the bank account after 30 years is $111,430.6Explanation:First we calculated…

Q: You buy a $250,000 house and pay $50,000 down.  The loan is for 25 years at 6% monthly. If you pay…

A: Using the PMT and NPER function in excel

Q: You want to have $10000 in five years.  How much should you deposit today if the bank pays 4%…

A: $10000 in 5 Years  That is 5*12 months = 60 Months (n) Interest rate 4% annual compounded monthly…

Q: you want to have $15,000 at the end of 5 years. if you can earn a return of 3.2% annually, how much…

A: given, fv= $15000 r=3.2% n=5 years