Assume that you plan to buy a condo 5 years from now, and you need to save for adown payment. You plan to save $2,500 per year (with the first deposit made immediately),and you will deposit the funds in a bank account that pays 4% interest. Howmuch will you have after 5 years? How much will you have if you make the depositsat the end of each year? ($14,082.44, $13,540.81)

Q: Jimmy wants to buy a taxi 6 years later. He will need $550,000 as the down payment. He initially…

A: Part (a): Answer: Annual effective rate of interest is 6.14%

Q: Suppose on January 1 you deposit $1000 in an account that pays a nominal, or quoted, interest rate…

A: Future value is the value of an asset that grows after a specific period of time. The future value…

Q: If you deposited $5000 in a bank that offers 12% annual interest rate, if the bank compounds the…

A: Deposit=5000Annual interest rate=12%Number of years=5years

Q: JOSH WANTS TO BUY A HOUSE AND WOULD NEED A $200,000 LOAN. HE WILL AMORTIZE THE LOAN FOR OVER 15…

A: Solution Firstly lets calculate the annual installment Annual installment          = loan amount/…

Q: How much will you have after 5 years? How much will you have after 5 years if you make the deposits…

A: Each year Deposit RM 2500 Interest Rate 4%

Q: You invest $ 1.000 in a bank account to buy a house at annual interest rate 14 per year, compounded…

A: Present Value (Investment in bank)= $1,000 Annual Interest rate (r)= 14% per year compounded monthly…

Q: Omar wants to buy a house in another 7 years. The type of house he wants to buy is currently selling…

A: Future value: Future value is $97,435.86

Q: Assume that you are saving up for a trip around the world when you graduate in two years. If you can…

A:

Q: You are about to purchase a new car and have two options to pay for it. You can pay $20,000 in cash…

A: Ordinary annuity are the PMTs which are made at the end of the period.

Q: sume that you plan to buy a condo 5 years from now and you need to save for a down payment. You plan…

A: solution given Annual deposit 2500 Interest rate 4% Number of years 5 years…

Q: You plan to deposit into your bank account $100 two years from now, $200 three years from now and…

A: A bank provides interest on the amount deposited or invested. Therefore, the withdrawal will consist…

Q: If you deposit $2,000 in a bank account that pays 6% interest annually, how much will be in your…

A: Solution- Given-The present value of deposit is=$2,000The rate of interest is=6%Time is…

Q: Say you want to invest a certain amount of your salary each year. This year you take $2,500 out of…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: 4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the…

A: A down payment is an early stage payment made for a particular good purchased through financing.

Q: Someone wants to save a sum of money. They are planning to save for a 5 year period with a deposit…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: A person try to buy an apartment five years from now , assuming that the first deposit was ( $ 3000…

A: Accumulated value after 5 years =  3000*(1+i)^4 + 3300*(1+i)^3 + 3600*(1+i)^2 + 3900*(1+i)^1 + 4200…

Q: If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much…

A: PV=FV/(1+i)^n (PV= present value FV= Future value i= discount rate  n= Number of period ) FV=…

Q: After completing your Principles of Finance course, you plan to save $6,800 per year for the next 11…

A: Saving per Year = 6800 Saving Total year =11 After Saving Number of years keep in Account = 6…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…

A: Loan is one of the alternative of financing. An individual or organization who is taking the loan…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the…

A: Down payment = 20% Loan (L) = 80% of $176000 = $140800 n = 15 years = 180 months r = 8.2% per annum…

Q: You would like to have $59,000 in 5 years for the down payment on a new house following graduation…

A: Future Value= $59,000; No. of periods= 5*4= 20 years, Interest rate per period = 4.24/4=…

Q: You want to buy a new house.  You can afford to pay $15,000 per year for 30 years with the first…

A: Annual payment (A) = $15000 n = 30 years r = 3%

Q: Susan Bentley will purchase a home for $257,000. She will use a down payment of 20% and finance the…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: Assume that you have purchased a new car and after your down payment, you borrowed $10,000 from a…

A: Monthly payment can be calculated using the present vale of annuity formula. Present value of…

Q: Please use formula in solving.   You are interested in buying a house worth P1,200,000. You paid…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

Q: 1. You want to buy a condo 5 years from now, and you plan to save $3,000 per year, beginning one…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Suppose you invest $120 a month for 5 years into an account earning 9% compounded monthly. After 5…

A: Computation:

Q: You think you will be able to deposit $4,000 at the end of each of the next three years in a bank…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Brayden and Noah plan to purchase a home for $140,000. They will pay 20% down and finance the…

A: An annuity is a series of cash flows that involve an equivalent amount occurring at equal time…

Q: Assume that you plan to buy a condo 5 years from now, and you estimatethat you can save $2,500 per…

A: The question requires to calculate the future value of annual instalments deposited in a bank. We…

Q: You decide to buy a house costing $400,000. You pay $100,000 down, and the remainder will be paid in…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: You want to buy a car, and a local bank will lend you$40,000. The loan will be fully amortized over…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: You decide to save $9300 by making annual deposits for 5 years into an account that pays 7%…

A: Given:   Amount to be saved  9300 Number of annual deposits 5 Time of withdrawal in years 7…

Q: 1.) Miller likes to invest in annuity that will pay him Php. 5000 at the end of each month for 5…

A: Note : As per the guidelines, only first question will be answered. Kindly post the second question…

Q: An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per…

A: Future Value = Present Value * (1+interest %)^N Future Value = 100*(1.0325)^7 Future Value =…

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: Assume you borrow $200,000 from a bank today to buy a house at 4% interest for 30 years with monthly…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: You want to buy a new sports car 3 years from now, and you plan to save $6,700 per year, beginning…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: you want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…

A: Given:

Q: You want to buy a condo 5 years from now, and you plan to save $3,000 per year, beginning…

A: Given:

Q: If you desire to have $10,000 for a down payment for a house in five years, what amount would you…

A: Calculation of Amount to Deposit Today:The amount to deposit today is $7,835.26.Excel Spreadsheet:

Q: A student plans to deposit $1,500 in the bank now and another $3,000 for the next 2 years. If he or…

A: Deposit now = $ 1500 Deposit after 2 years = $ 3000 Withdraw after 5 years = $ 5000 Future value…

Q: You plan to buy an apartment for $300,000, but you have only $8,000 in cash. The bank will  loan you…

A: Time value of money is considered to determine the equated instalments that are due for each period.

Q: Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The…

A: Information Provided: Return for the first 11 years = 1.40%Return for the next 16 years = 6.90%…