A man decided to save to buy a new $30,000 car to take care of his family in his hometown.He has $12,000 today that can be invested at UBA bank . A. If the bank pays 6% interest compounded annually,how long would it take him before he has enough money to buy the car ?

Q: Spencer would like to purchase a new car for $12,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function.

Q: Suppose you would like to save enough money to pay cash for your next car. The goal to save an extra…

A: Computation of quarterly deposit:Hence, the quarterly deposit is $921.76.

Q: - Simionie needs $7000 to buy a snowmobile, but only has $6000. His bank offers a GIC that pays an…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Mike Wilson, is an Uber driver and wants to buy a new car in 6 years.  He estimates the vehicle will…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Can you please help me work out this problem in detail?   Tony Ring wants to attend Northeast…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: You are looking to purchase a new car, and you expect to have annual maintenance costs to keep it…

A: Please see the next step for the solution

Q: Mr. Dela Paz is thinking of buying a new car in 5 years. He estimated that he needs to have…

A: Future Value = 800,000 Time Period = 5 years*2 = 10 semi annual periods Deposit = ? Interest Rate =…

Q: 2. Andy is planning to buy a car when he graduates from college 4 years from now. The estimated…

A: One-time simple interest is often used for very relatively brief loans. Interest is often…

Q: ean needs $18,000 immediately as a down payment on a new home. He can borrow this money from his…

A: Periodic payment is calculated by present value of annuity formula.

Q: You graduate and receive a $3,000 cheque from your grandparents. You decide to save it toward a down…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Jacob has 5000 dollars and wants to earn 6500 dollars from the bank. If the bank gives a simple…

A: There are two types of interest offered by banks on deposits. One is simple and the other one is…

Q: Andy has asked you to bankroll his proposed business painting houses in the summer. He plans to…

A: here in this question to calculate annual rate of return we have to calculate the IRR of the project…

Q: A student wants to save up for a car, assuming that he/she would be able to save up a certain sum…

A: Given information: Future value of car : 255000 Time period : 4 years Interest rate : 14%

Q: John wants to buy a car in 5 years. The cost of the car is $30,000 at that time. How much must John…

A: The annual savings required can be calculated with the help of future value of annuity function

Q: Raya is saving for a new car. He needs to have OMR 21000 for the car in three years. How much will…

A: Given: Future value = OMR 21,000 Interest rate = 8% Years = 3

Q: You have a client who wants to buy a house in 2 years. He needs $40,000 for a down payment. If he…

A: in this problem we have to calculate quarterly interest rate and from that we can get present value.

Q: You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a…

A: Given, Future value is $8,000 Present value is $4,000 Rate is 6%

Q: Joe wants to have $10,000 in 10 years after investing in an account that earns 3.6% compounded…

A: Future value required (FV) = $ 10,000 Annual interest rate = 3.6% Monthly interest rate (r) =…

Q: Hudson would like to purchase a new car for $25,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: Stuart Daniels estimates that he will need $28,000 to set up a small business in 9 years. (a) How…

A: Given information: Future value needed is $28,000 Number of years is 9 Interest rate is 8%…

Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…

A: Given, Discounting rate=6%12 months=0.5% per month Period=5 years×12 months=60 months

Q: 4/ Julieta and Eric are purchasing a home. They wish to save money for 15 years and purchase a house…

A: The concept of time value of money states that the same amount of money has more value today than in…

Q: Isaac only has $1,090 today but needs $1,979 to buy a new computer. How long will he have to wait to…

A: To open the "NPER function" window - MS-Excel --> Formulas --> Financials --> NPER.

Q: You want to save money from your businessoperation to replace a truck that has been used indelivery.…

A: Given information: Replacement cost after 12 years is $60,000 Number of years is 12, Interest rate…

Q: You want to have $35,000 in cash to buy a car 3 years from today. You expect to earn 3.6 percent,…

A: In this we have to calculate present value of future value.

Q: The Weidmans want to save $45,000 in 4 years for a down payment on a house. If they make monthly…

A: Computation:

Q: Wally wants to buy a house instead of renting, and has found a bank that is ready to loan him a…

A: Here, Interest Rate is 5% per year Time Period to live in the house is 15 years Value of Home at the…

Q: Your cousin Jeremy has asked you to bankroll his proposed business painting houses in the summer. He…

A: The provided information are: Amount = $5000 Annual payment = $1500 Time period = 5 years

Q: Kristi Perez puts $10,500 into an account to save money to buy a car in 12 years. She expects the…

A: We require to calculate the interest rate from following details given in the question: Current…

Q: Your parents agree to pay half of the purchase price of a new car when you graduate from college.…

A: Calculate the future value as follows: Future value = Amount * (1 + rate)^years Future value =…

Q: You expect to save $450 at the end of each month for the next four years towards a car. Your parents…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Tony wants to have $10,000 in 10 years after investing in an account that earns 4.6% compounded…

A: Future value is $10,000 Time period is 10years Interest rate is 4.6% Compounded monthly   To find:…

Q: Raya is saving for a new car. He needs to have OMR 21000 for the car in three years. How much will…

A: Present worth refers to the current value of the amount or series of cash inflows which an investor…

Q: A student wants to save up for a car, assuming that he/she would be able to save up a certain sum…

A: Given information, Time Period = 4 years*12 =48 periods (when period is monthly) Future Value of…

Q: Please provide working to the solution for the question below: You have just graduated and need…

A: Solution:- Interest rate is also known as opportunity cost. So, the amount of loan granted will be…

Q: a.) Find Jin’s monthly payment. b.) If after 10 years, he decided to pay off the loan, calculate…

A: a.) PMT = P x r / [1 – {1 / (1 + r)^n}] Here, PMT = Periodic Payment P = Present Value or Amount…

Q: Stuart Daniels estimates that he will need $26,000 to set up a small business in 9 years. (a) How…

A: We need to calculate present value that is required to be invested today to get desired…

Q: o complete your last year in business school and then go through law school, you will need $20,000…

A: Calculation of Amount of Deposits and Amount of Deposits after first and last withdrawal: The amount…

Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…

A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…

Q: Your parents agree to pay half of the purchase price of a new car when you graduate from college.…

A: Future Value of an investment is value of an investment today which would earn an interest on the…

Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…

A: Given Information: Initial cost of house is $200,000 Net rental income is $2000 per month MARR is 6%…

Q: Hudson would like to purchase a new car for $12,000. How much will his monthly payments be if he…

A: Loan amount (PV) = $ 12000 Interest rate = 6.5% Monthly interest rate (r) = 6.5%/12 =…

Q: You are going back to school and anticipate you will need 25,000 a year for living expenses for 6…

A: Using Excel PV function

Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…

A: Capital budgeting indicates the evaluation of the profitability of possible investments and projects…