Dina Naples is saving money at the IBM Credit Union for a down payment on a house. How much does she have to save at the end of every month in order to accumulate a total of $12,000 at the end of five years if the money is invested at 0.5% per month?

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: Josh is planning to withdraw $9000 from a savings account at the end of each quarter for 3 years. If…

A: Since more than one question is posted at a time. Answer for first question is only provided. Please…

Q: Marie, an employee at McCormick, has determined that she will need $5500 per month in retirement…

A: An annuity is a series of cash flows with an equal amount occurring at equal time intervals for a…

Q: A 20-year-old student wants to save RM 4 a day for her retirement.  Every day she places RM 4 in a…

A: An annuity is a series of cash flows such as income or payment over a specific duration. Each cash…

Q: Kiki bought a computer for Rp. 8,000,000, -. If he bought it With credit, he must prepare advance…

A: The portion of the purchase price of goods and services that are paid immediately at the time of…

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: Francine currently has $70,000 in her 401k account at work, and plans to contribute $7,000 each year…

A: Current amount (PV) = $ 70000 Annual deposit (P) = $ 7000 Interest rate (r) = 6% Number of annual…

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: Jenna borrows $20,000 to remodel her kitchen. She makes monthly payments of $400 for six years. What…

A: Cost of Loan will be total payment made minus amount of loan taken

Q: 4. A girls gives 100 to her mother every month. Her mother saves it into an account that earns…

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

Q: Rebecca saved $1000 from her summer job and bought a CSB earning 3.75%, compounded monthly. She…

A: Amount saved = $1000 Interest rate of CSB = 3.75% per annum = 0.3125% per month Total amount…

Q: Nick saves $175 per month, deposited directly into his credit union account on payday, the last day…

A: In order to calculate the amount at the end of a specific period of time, the future value of the…

Q: how much must brix save in his account at the end of each month in order to have 125,000.00 at the…

A: Monthly Compounding Interest Rate = 5.88%/12 = 0.49% per month Time Period = 5 years × 12 = 60…

Q: Maria saves ​$32 at the end of each week and deposits the money in an account paying 12%…

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

Q: Leo wants to have $6500 to buy furniture when he moves into an apartment in 3 years. He invested…

A: The future value is the future worth of the amount that will be paid or received at future.

Q: A family has a goal of saving $31,000 to be used as the down payment for a house. If they put…

A: The number of years it will take to reach the amount of $31,000 can be determined using NPER…

Q: Benji wants to purchase a new car in 4 years. He plans on putting $8,000 down. He will be putting a…

A: let payment be = A r=9% m=12 (monthly compounding) n =4 FVA = $8000

Q: * Shara Jane Mariano buys a 137,000 laundry business by paying 26,000 at the end of each year. At…

A: The amortization table means a table showing the schedule of payments in each period including the…

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: 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: Matt Johnson delivers newspapers and is putting away ​$18 at the end of each month from his paper…

A: Monthly payment (P)  = $18 Period = 6 Years Number of monthly payments (N) = 6*12 = 72

Q: In 20 years, Hannah would like to have $30,000 in an account that earns 4.2% compounded monthly. How…

A: In the given question we need to compute the Deposit today so that Hannah will have $30000 at the…

Q: Lena is regularly saving money in order to buy a new car at the end of 7 years. If the car is 30,000…

A: Cost of Car is 30,000EUR Interest rate is 2% Time period is 7 years or 7×12 = 84 months To Find:…

Q: How much would tom’s initial balance have to be? show work and formula

A: Present Value of Future Amount = FV / (1 + r)^n Here, FV = Future Value i.e. $30000 r = Periodic…

Q: Max wants to save $500,000 to give to the local clown college. Max decides he can afford to deposit…

A: Given:Max want to save $500000He can deposit $10000 each month Which pay 4% monthly interestTo…

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: A middleclass woman wants a luxury bag so much that she is willing to pay the bag in installment as…

A: Monthly payment in year 1 = P 5000 Monthly payment in year 2 = P 4000 Monthly payment in year 3 = P…

Q: Kourtney currently works at Bruin Productions and decide to finally plan for the future, she wants…

A: Information Provided: Future value = $250,000 Term = 10 years Interest rate = 6.1% compounded…

Q: what is the size of the payments

A: Compound interest is the amount of interest earned over the interest. Under this method the…

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: Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at…

A: The future value of annuity would be considered the value accumulated in future with a view to…

Q: In 7 years Harry and Sally would like to have $20,000 for a down payment on a house. How much should…

A: A down payment seems to be a monetary payment made at the start of a purchase deal. It is frequently…

Q: Bria has $450,000 saved for retirement in an account earning 2.4% interest, compounded weekly. How…

A: Future Value:-It is the value of an investment at a future date based on the growth rate. It helps…

Q: John plans to save money for a down payment of $38,000 to purchase an apartment. You can only afford…

A: Payment period- The payment period is the phase of time from the point a debt is incurred to the due…

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: How much money has accrued in the account at the end of the 14 years? (Round your answer to the…

A: Case i. Money accrued in the account at the end of the 14 years: Future value of annuity formula =…

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: Jennifer Creek is saving up for a new car. She wants to finance no more than $10,000 of the $26,000…

A: The future value function can be used to determine the future value of a present sum of cash flow,…

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: Becca wants to save $900 per quarter for 3 years towards the purchase of an appliance. She feels…

A: Total number of  quarters  in 3 years  = 4 quarters  × 3 years = 12 quarters  Thus, Becca will…

Q: Each month Lara invests $100 in an account earning 4% annual interest compounded monthly. a) Find…

A: PV= $100 r= 4% compounded monthly n= 20 years FV=?   FV= PV(1+r)n FV= $100(1+0.04/12)20*12 FV=…

Q: Each month Lara invests $100 in an account earning 4% annual interest compounded monthly. a)find the…

A: Annuity refers to an investment which involves a series of regular payments for a certain period of…

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…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.