Becca wants to save $900 per quarter for 3 years towards the purchase of an appliance. She feels that she can earn 5.42% compounded quarterly for this period of time. If she starts immediately, what is the most expensive appliance that she can purchase?

Q: The Weidmans want to save $40,000 in 2 years for a down payment on a house. If they make monthly…

A: Given that;Future value is $40000Interest rate is 12%We need to take the present value as $0

Q: Rebecca wants to set aside some money for a vacation in 8 years. How much does Rebecca need to set…

A: AMOUNT REQUIRED AFTER 8 YEARS(A)=$4700 RATE OF INTEREST(R)=13% COMPOUNDED ANNUALLY TIME PERIOD=8…

Q: Sarafina is making monthly payments into an annuity. She wants to have $600 in the fund to buy a new…

A: Monthly payment The minimum amount needed every month to be paid by an individual.

Q: If she invests $1900 into a savings account for those 5 years at 6.5% interest, compounding…

A: Given that: Future value = $2500 Time period = 5 years

Q: A person needs ​$18,000 immediately as a down payment on a new home. Suppose that she can borrow…

A: Continuously compounded interest rate refers to the interest rate that is calculated on the…

Q: Rosa Burnett needs $4,000 in three years to make the down payment on a new car. How much must she…

A: Future value required for car = $4,000 Interest Rate = 2.5% Time period = 3 years

Q: Because you study at AUIS when you graduate, we expect you to earn $150 more a month than another…

A: Here, Earning per Month is $150 Annual Interest Rate (r) is 10% Compounding Period (m) is Semi…

Q: Stephanie is going to buy a car that costs $30,000. If she makes $650 a month payments for 48 months…

A: Calculate the present value of loan as follows: Present value of loan is $27,731.31

Q: Jill wishes to buy a used Ford Escape for $16,000 with a 20% down payment at 7.5% for 36 months.…

A: Down payment is the initial amount paid to the seller while buying something on credit. It is a part…

Q: Kristina is going to finance new office equipment at a 5% rate over a 1.5 year term. If she can…

A: Using excel PV function

Q: Kym plans to deposit $100 in an account at the end of each month for the next five years so that she…

A: The monthly payment is $100 for the next five years at 6% compounded monthly. Future value of an…

Q: To buy some furniture, Asmaa can put $150 down and "don't pay a cent" for 6 months. At the end of 6…

A: Price of furniture is sum of amount financed and the down payment. Amount financed is calculated by…

Q: Alvi has decided to save 5000 taka per month over the next 10 years in a DPS account that provides…

A: Amount he will get is future value of monthly deposits  and it is calculated using fv function in…

Q: Gertrude wants to make $500 monthly withdrawals for 10 years from an account which pays 4%…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Sue decides to start saving money for a new car. She knows she can invest money into an account…

A: According to time value of money, FV=PV×1+RMM×N Where, PV = present value R = rate of interest M=…

Q: Natalie just rented an apartment for $750 a month. She was told that the rent will increase 5.75%…

A: Monthly Rent = 750 Annual Increase in Rent = 5.75% Time Period (T) = 6 years

Q: As soon as Erika graduated from college and got her first fulltime job, she decided she would start…

A: Monthly deposit (m) = $400 Monthly deposit period (p) = 120 (i.e. 10 years * 12) Monthly interest…

Q: A woman wishes to save $20,000 for a down payment on a home. She can afford to set aside $1100 per…

A: The concept of the time value of money states that the same amount of money is worth more now than…

Q: Susanna wants to purchase a house costing $212,286. She plans to put $51,874 toward a down payment…

A: Cost of house = $ 212,286 Down payment = $ 51,874 Mortgage amount (PV) = 212286-51874 = $ 160412…

Q: Mary decided to begin saving towards the purchase of a new car in 5 years. If Mary put $500 at the…

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

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: Mrs. Jillian has just turned 16 years old and has her mind set on buying a new car by the time she…

A: Time value of money identifies the depreciation in value of money over the period of time by…

Q: You want to save the down payment required to purchase a vacation home at the end of four years. If…

A: FUTURE VALUE OF ANNUITY  (FVA) FORMULA: FVA=A×1+rn-1r where, r=rate of interest n = number of years…

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: Rick wishes to purchase a new car and can afford monthly payments of up to $275 per month. Finance…

A: Time value tells the value received today by an individual is of more worth than the exact amount…

Q: Tammie wants to buy a scooter that costs $3,500. Her mom will loan her the money at 5% annual…

A: A concept that implies the future worth of the money is lower than its current value due to several…

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: The Weidmans want to save $25,000 in 4 years for a down payment on a house. If they make monthly…

A: FORMULA FOR MONTHLY PAYMENT: PMT = P×rm1-1+rm-m×n p = principal r= rate of interest m = frequency of…

Q: When Gustavo and Serrana bought their home, they had a 5.7% loan with monthly payments of $870.60…

A: Given information : Interest rate on loan = 5.7% Monthly payments = $870.60 Time period = 30 years…

Q: Rosina plans on saving $2000 a year and expects to earn an annual rate of 6.9 percent. How much will…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Bob has saved $ 5000 towards the purchase of a car costing $ 7000. For how many months does Bob need…

A: When the interest is computed on the principal amount along with all the previously accumulated…

Q: Your goal is to retire in 20 years.  You plan to start on this path by saving $200 a month.  If you…

A: Given: No. of years= 20 yrs No. of months= 240 (20*12) Rate= 6% annually Payment each month= $200…

Q: Nicole wants to save 3500 dollars in the next 2 years to go on a backpacking trip.  Interest on her…

A: Here, Interest Rate is 3.6% Time Duration is 2 years Future Value required is $3,500. Calculation of…

Q: Anh decided to buy a new car that costs $35,500. She knows that she can get a 6-year loan at 3.8%…

A: 1. Calculate the present value of the monthly payments that the individual can afford by using EXCEL…

Q: Sylvia wants to buy a car and feels that she can afford payments of $200 per month (month-end…

A: Using excel PV function Where PMT is the monthly payment NPER is the compounding periods RATE is…

Q: A person needs ​$17,700 immediately as a down payment on a new home. Suppose that she can borrow…

A: Borrowing Amount = 17,700 Semi Annual Installments Time Period = 20 semi annual periods Interest…

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: To finance a vacation in 4 years, Elsie saves $450 at the beginning of every six months in an…

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

Q: In 10 months, Alex will need $1,320.00 to pay her college tuition. How much does she need to invest…

A: Computation of amount need to be invested by Alex is as follows:Rate of interest=8.745%amount after…

Q: Claudia owns a 6 year old jeep . She wants to determine the Future Worth of the maintenance and…

A: Future value  is the worth of any asset or any sum of money at a future date when such asset or…

Q: In 4 years, Jennifer Videtto will need to purchase a delivery van for her plumbing company. She…

A: Present value refers to the current value of future stream of cash flows at a given specified rate…

Q: Bailey just rented an apartment for $900 per month. She was told that the rent will increase 5.5%…

A: Renting means allowing someone to use a certain property and he must not be the owner of the…

Q: Carmen Hernandez has saved $8,000 for a deposit on a car. The highest monthly payment she can afford…

A: Deposit amount = $ 8,000 Monthly payment = $ 455 Annual interest rate = 11% Monthly interest rate =…

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: Izzie contributes $100 every other week from her paycheck to her retirement savings account. which…

A:

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…