You plan to graduate in 4 years, and then travel to Italy for 3 weeks. The trip will cost $ 1,600. 1. If you can earn an annual interest rate of 8%, how much do you have to save right now to have enough money for your trip? 2. Instead, the interest rate is 0.667% per month. How much do you need to save right now?

You plan to graduate in 4 years, and then travel to Italy for 3 weeks. The trip will cost $ 1,600. 1. If you can earn an annual interest rate of 8%, how much do you have to save right now to have enough money for your trip? 2. Instead, the interest rate is 0.667% per month. How much do you need to save right now?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You want to buy a $13,000.00 car. You can make a 10% down payment, and will finance the balance with a 3% interest rate for 36 months (3 years). What will your monthly payment be? My monthly payment will be $______
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You plan to graduate in 4 years, and then travel to Italy for 3 weeks. The trip will cost $1,500. If you can earn an annual interest rate of 8%, how much do you have to save right now to have enough money for your trip? Instead, the interest rate is 0.667% per month. How much do you need to save right now?
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