A family spends $46,000 a year for living expenses. If prices increase by 3 percent a year for the next three years, what amount will the family need for their living expenses after three years?
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- A family spends $46,000 a year for living expenses. If prices increase by 3 percent a year for the next three years, what amount will the family need for their living expenses after three years? (LO 1.1)
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- A family spends $46,000 a year in living expenses.If prices increase 3% a year for the next 3 years what amount will family need for their living expenses after 3 years?A family spends $30,000 a year for living expenses. If prices increase by 5 percent a year for the next three years, what amount will the family need for their living expenses after three years?A family spends $40,000 on living expenses. With an annual inflation rate of 3 percent, they can expect to spend approximately _____________blank in one year.
- Suppose your parents have just retired and have $1 million in a retirement account. For how many years can they withdraw $5,000 at the beginning of each month for expenses, assuming that the account will continue to earn a 5 percent annual return until it is exhausted?Suppose a young couple deposits $700 at the end of each quarter in an account that earns 7.2%, compounded quarterly, for a period of 3 years. How much is in the account after the 3 years? (Round your answer to the nearest cent.) After the 3 years, they start a family and find they can contribute only $200 per quarter. If they leave the money from the first 3 years in the account and continue to contribute $200 at the end of each quarter for the next 18 1 2 years, how much will they have in the account (to help with their child's college expenses)? (Round your answer to the nearest cent.)A small business owner contributes $3,000 at the end of each quarter to a retirement account that earns 10% compounded quarterly. (a) How long will it be until the account is worth $150,000?(b) Suppose when the account reaches $150,000, the business owner increases the contributions to $5,000 at the end of each quarter. What will the total value of the account be after 15 more years?
- Seth and Alexandra Moore of Elk Grove Village, Illinois have an annual income of $120,000 and want to buy a home. Currently, mortgage rates are 4.0 percent. The Moores want to take out a mortgage for 30 years. Real estate taxes are estimated to be $5,160 per year for homes similar to what they would like to buy, and homeowner's insurance would be about $1,620 per year. Using a 28 percent front-end ratio, what are the total annual and monthly expenditures for which they would qualify? Round your answers to the nearest dollar. Total annual expenditures $ Monthly expenditures $ Using a 36 percent back-end ratio, what monthly mortgage payment (including taxes and insurance) could they afford given that they have an automobile loan payment of $450, a student loan payment of $350, and credit card payments of $270? (Hint: Subtract these amounts from the total monthly affordable payments for their income to determine the amount left over to spend on a mortgage.) Round your…Bill and Sally Kaplan have an annual spending plan that amounts to $40,000. If inflation is 4 percent a year for the next three years, what amount will the Kaplans need for their living expenses three years from now? Group of answer choices $44,100 $45,000 $43,264 $46,305 $46,794The Carp family makes a $30,000 down payment on a $150,000 home. They finance it for 15 years at 3 7/8%. If annual taxes are $2,970 and homeowners insurance is $940, what will their total PITI payment be? If the bank charges 2 discount points, how much will the Carp family pay for them? Referring to question #15, if the Carp's have a gross monthly income of $5,600 and total fixed monthly expenses of $2,720, which includes their house payment, calculate the housing ratio and the debt to income ratio. Do they qualify?
- Suppose a newlywed couple is planning to buy a home two years from now. To save the down payment required at the time of purchasing a home worth $400,000 (let's assume this required down payment is 25% of the sales price, or $100,000), the couple has decided to set aside some money from their salaries at the end of each month. If the couple can earn 9% interest (compounded monthly) on their savings, determine the equal amount the couple must deposit each month so that they may buy the home at the end of two years. A retired couple has a fixed income of $3900 per month. Assuming an annual inflation rate of 8% (compounded annually), what is the purchasing power (in dollars) of their monthly income in 5 years? (Round your answer to the nearest cent. )Kerry and Andy Zell are retired and after saving their entire life, they have $230,000 in a savings account paying 3% compounded daily. What is their gain or loss in purchasing power in a year in which the CPI is 5%?
