Baljeet, with his parents, wants to buy a local franchising hub. He found an interesting building which will cost her 40,000 rupees every beginning of each quarter increasing by 6% every quarter for 5 years. However, after paying for 3 years, he decided to stop because he got in an argument with his parents. How much money does he still owe (remaining balance) at the end of 3 years? If he wanted to continue the payment of 50,000 rupees every end of each year after the last payment, how long would it take for him to take ownership of the building? Money is worth 6% compounded semi-annually.

Baljeet, with his parents, wants to buy a local franchising hub. He found an interesting building which will cost her 40,000 rupees every beginning of each quarter increasing by 6% every quarter for 5 years. However, after paying for 3 years, he decided to stop because he got in an argument with his parents. How much money does he still owe (remaining balance) at the end of 3 years? If he wanted to continue the payment of 50,000 rupees every end of each year after the last payment, how long would it take for him to take ownership of the building? Money is worth 6% compounded semi-annually.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 2FPC

See similar textbooks

Similar questions

Baljeet, with his parents, wants to buy a local franchising hub. He found an interesting building which will cost her 40,000 rupees every beginning of each quarter increasing by 6% every quarter for 5 years. However, after paying for 3 years, he decided to stop because he got in an argument with his parents. How much money does he still owe (remaining balance) at the end of 3 years? If he wanted to continue the payment of 50,000 rupees every end of each year after the last payment, how long would it take for him to take ownership of the building? Money is worth 6% compounded semi-annually.
For years, Jake has practiced the “buy now, pay later ” philosophy of money management. For example, he purchased a car 3 years ago with a 6-year (72 month) loan at 7% per year interest. He has refinanced the loan each year at a higher interest rate; 7.5% last year and 8.5% this year. With a serious recession anticipated in his line of work, he was told yesterday by his boss that his salary would be cut by 25% for the next 2 to 4 years. When Jake tried to refinance his car loan yet once again, the bank loan officer said that due to his multiple loan applications, his credit rating had been lowered significantly and that his current loan must be paid off in the next 6 months to recover his credit rating in the future. Provide Jake with some examples of what he could do to get his finances and credit rating in better order.
Phoebe Jones is now employed as the managing editor of a well-known business journal. Although she thoroughly enjoys her job and the people she works with, what she would really like to do is open a bookstore of her own. She would like to open her store in about eight years and figures she'll need about $ 60,000 in capital to do so. Given that Phoebe thinks she can make about 8 percent on her money. How much would Phoebe have to invest today, in one lump sum, to end up with $60,000 in eight years? Round the answer to two decimal places. $_________________ If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in eight years? Round the answer to two decimal places. $ __________________ How about if she already has $20,000 socked away, how much would she have to put away annually to accumulate the required capital in eight years? Round the answer to two decimal places. $___________________ Given that Phoebe has…
Akbar and Ahmed are newly purchase a shop for OMR 80,000 in Oman in city mall, muscat. Since the shop is very small, they planning to move in a big shop in 7 years. How much will their small shop worth in 7 years if inflation is expected to be 9%? Justify your answer, will you suggest or not to buy big shop in next 5 years in city mall?
Charlotte has just finished her MBA and started a career in banking investment, she wanted to have a new car as soon as possible. The price of the car is $ 28,320. She must also have clothes and coats for the job which costs $ 3,248. The salary for his job this year is $ 42,000 and next year it will be increasing to $ 46,000. The cost of living this year is $ 34,000. Charlotte plans to make the difference between income and expenditure for consumption by borrowing. Interest on the loan is 15% per year. Charlotte wants to pay the loan and interest within a year. How much money is left for next year that Charlotte can spend (consume)?
Aina just got her driver license, and she wants to buy a new car cost for RM70,000. She has RM3,000 to invest as a lump sum today. Aina is a conservative investor and she only invests in safe products. After approaching different banks, she is offered the following investment opportunities: Union Bank's savings account with an interest rate 10.8% compounded monthly First State Bank's savings account with an interest rate of 11.5% compounded annually. i) Calculate how long it will take Aina to accumulate enough money to buy the car in each of the investment opportunities. ii) Explain which investment opportunity should be taken by Aina
Victor is somewhat satisfied with his sales career and has always wondered about a career as a teacher in a public school. He would have to take a year off work to go back to college to obtain his teaching certificate, and that would mean giving up his $52,000 salary for a year. Victor expects that he could earn about the same income as a teacher. Round your answers to the nearest dollar. 1. What would his annual income be after 10 years as a teacher if he received an average 3 percent raise every year? Round Future Value of a Single Amount in intermediate calculations to four decimal places. 2.
Show Your Work Brian just purchased a home for $300,000 and made the required down payment of 20% ($60,000) to avoid PMI. Therefore, he is financing $240,000 over 30 years (360 months) at 3%. A) How much are his payments on the loan? B) His husband, Greg, is a great financial planner and says it would be very prudent to pay an EXTRA $200 per month on the mortgage payments. How many monthly payments will this “knock off” or reduce on the original 360 payments? How much interest will be saved over the life of the loan by making the extra $200 per month payment?
After working for years in her small business. Dr Ewere was finally making money. Since she was still worried about emergencies, she decided to put $185,750 in an investment for 4 years. Find the future value if it earns (a) 8%, per year compounded quarterly and (b) 4%, per year compounded semi annually. (c) Then find the difference between the two
Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that develops applications for smart phones. Based on market research, she can sell about 50,000 units during the first year at a price of $4 per unit. With annual overhead costs and operating expenses amounting to $145,000, Jamie expects a profit margin of 20 percent. During the first year, Jamie is using her savings to cover total costs. Current annual rate of return on saving is 2.1%. This margin is 5 percent larger than that of her largest competitor, Apps, Inc.
--you live in the mobile home for four years, but your roommate also pays you $3,000 a year, paid to you at the beginning of each year. The cost of the mobile home is $15,000, paid immediately. At the end of four years, you can sell the mobile home for $9,000. You have no maintenance on the home because you were such a smart manager Using Present Value, what is the cost of your college housing (positive or negative), assuming an interest rate of 8%?
Bianca decides to stop going to the coffee shops in the morning and figures she saves about $30 per week by doing so. Instead, she deposits $30 at the end of each week into an account that earns 3.8% interest. How much money will she have saved in this coffee account after 5 years?