Hashim wants to invest an amount of OMR. 9500 every year to buy a house at the end of 12 years. For this purpose, he wants to invest some money in a saving bank but does not know the exact amount of money he will get after 12 years a) What amount will he receive assuming an interest rate of 3.005%? b) What amount will he receive assuming an interest rate of 6.50%? c) Suggest the option which will be enough to meet his house which is estimated to be OMR. 100000?

Q: bob wants to retire in 10 years and then have enough money saved to withdraw $75,000 a year for 15…

A: The term "annuity" is a financial term that represents a series of cash flows for a specific period.…

Q: John has an investment opportunity that promises to pay him $16,000 in four years. He could earn a…

A: Formula used to calculate present value.

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of…

A: The cost to buy an annuity today is calculated by discounting the annuity values with the present…

Q: Mr. Ram wish to work for another seven years and wants to buy a second home in Munnar after his…

A: Future Value Required = 2,00,00,000 Time Period (N) = 7 years i.e. 14 semi annual payments Interest…

Q: Ashraf wants to buy a car for which he has been saving and investing in a bank an amount of OMR.…

A: Using excel PV function

Q: Yao currently acquired a mortgage to buy a house in Leamington Spa. This mortgage is for a value of…

A: We can use this formula to find out equal annual payment of loan amount    A = P*[…

Q: money should he have

A: A retirement plan refers to the financial strategies of saving, investments, or distributing money…

Q: Salama wants to buy a car worth OMR. 10000, for which she has been saving and investing in bond an…

A: Annuity refers to the set of periodic payments that an investor or depositor makes into an…

Q: Abdullah is looking to invest for the next three years. He is looking to invest OMR 7500 today in a…

A: Given: Present value = OMR 7,500 Interest annually = 5.75% Years = 3

Q: y have just planned to put aside RM9,872.43 now for this purpose. (a) What is the interest rate per…

A: Given information : Future value 12000 Time period (years) 4 Amount set aside 9872.43 Farid…

Q: Barry plans to invest $350 a month for the next 30 years, how much money will he have in his account…

A: Given data, monthly payment = $350 number of years = 30 years annual rate = 12%   To calculate the…

Q: Salvatore has the opportunity to invest in a scheme which will pay $5,000 at the end of each of the…

A: This question provides that a scheme will pay 5000 per year at the end of each year for next 5 years…

Q: compounded

A: Formula to calculate rate of interest under compound interest: r = n[(A/P)^1/nt - 1]] Where r is the…

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: 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: Rohit invests $ 1 every year starting from the end of the current year. If his savings earn an…

A: Solved using Financial Calculator  PMT = +/- 1 I/Y = 15 FV = 20 CPT N = 9.92 = 10 years

Q: Planning to give his son a car as a gift when he graduates from college 2 years from now, Adam…

A: 2 years from now , Monthly Payment = 21500 Time Period = 3 years × 12 = 36 months Interest Rate =…

Q: What is the present value of this investment if the interest rate is 3​%?

A: Present value means the current value of money of some money in the future. PV factor = 1(1+r)n…

Q: Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he…

A: The correct answer for the above mentioned is given in the following steps for your reference.

Q: (b) Aminah plans to buy a house in Shah Alam which the market price is RM450,000. To buy the house,…

A: The amount to be deposited each year is known as an annuity. It refers to the equal payments made at…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…

A: Annual income (C) = $ 7000 Number of annual payments (n) = 21 Annual interest rate (r) = 5.25%

Q: Alfred Smith wants to purchase life insurance that will guarantee his family $50,000 (in R-dollars)…

A: Given information: Amount of insurance is $50,000 Interest rate on corporate bonds is 8% Inflation…

Q: o prepare for his son's college education, a man plans to make monthly deposits of Php2000 for…

A: Monthly deposit (P) = Php. 2000 Number of monthly deposits (n) = 60 Interest rate = 12% Monthly…

Q: Charlie wants to withdraw $12,000 each year forever from his account. At an interest rate of 6% per…

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

Q: Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to…

A: Before making any calculation let us first arrange these cashflows into a cashflow time line chart.…

Q: Bro decides to take out a loan for $50,000 for 5 years at 7% monthly. If he pays an extra $200 per…

A: Installment is the periodic amount paid by the borrower to the lender in order to pay back the loan…

Q: Hong is going to invest to help with a down payment on a home. How much would he have to invest to…

A: The amount required to invest today can be calculated as present value of future amount

Q: Cameron is saving for his retirement 22 years from now by setting up a savings plan. He has set up a…

A: Time period till retirement is 22 years Quarterly saving of $97.00 Time period of saving is 12 years…

Q: Saifis planning to buy a house in 18 years. He wants to invest RO 549 now and hopes to have RO 8549…

A: Interest rate = (FV/PV)1/n - 1 Where  FV = future value = RO8549 PV = present value = RO549  n =…

Q: Mark deposits $40,000 now into an account which will earn interest at a rate of 8% per year, how…

A: Present value of annuity concept is used to calculate the annual withdrawal amount.

Q: Kobe is retiring in 19 years, and wants to save some money. He will make bi-weekly deposits of…

A: Bi-weekly Deposit = $513.38 Time Period = 19 Years Interest Rate = 2.750% compounded semi-annually

Q: Suleman plans to fund his retirement plan and targeting to get OMR 50,000 at the end of 9th year,…

A: Computation:

Q: Suppose you are 40 years old and plan to retire in exactly 20 years. 21 years from now you will need…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Lucky Luis has just won $20,000 and wants to invest it for 12 years. There are three plans available…

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

Q: Simon is considering purchasing an emu, which he can graze for free in his backyard. Once the emu…

A: Given, Initial price = $1500 Value of Payment after 3 years = $2000 Interest rate R = 8%

Q: Your client is 40 years old; and she wants to begin saving for her retirement, with the firs payment…

A: Future Value: The worth of the asset at any future date using the assumed growth rate is known as…

Q: andy wants to go on a trip in 10 years if she invests 1000 per year at the end of each year for 10…

A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…

Q: David is interested in a rental apartment that would supply him with $60,000 at the end of year 1,…

A: The amount that David should pay for this investment should be equal to the NPV of all cash flows.…

Q: On his son's fifth birthday, a man decides to deposit a certain amount which will be equivalent to…

A: given, FV = 28000 NOMINAL RATE = 512%=5.5% inflation = 8.7% n = 13 years ( 18-5)

Q: A grandfather is planning to leave his only granddaughter well off when she reaches the age of 25.…

A: Real interest rate is the rate which is adjusted with the expected inflation rate whereas nominal…

Q: Josiah is considering using his lottery winnings of $900,000 to buy a house. He nust first pay off…

A: Lottery amount = 900000 Debt = 300000 House worth = 700000 Down payment = 35% Year = 25  Percent =…

Q: Charlie wants to retire in 15 years, and he wants to have an annuity of $50,000 a year for 20 years…

A: Annuity refers to a series of payment made at a regular interval of time. We need to use the concept…

Q: George Green wishes to invest $8000.00 that he saved from his summer job. His bank offers 3.75% for…

A: Given information: Principal = $8,000 Interest rate for one-year term = 3.75% Interest rate for 6…

Q: Aman wishes to set aside some money to fund a special vacation for his family in 7 years. He wil…

A: Interest expense is the periodic obligation of the borrower to pay a certain percentage of sum…

Q: What amount will he receive assuming an interest rate of 4.005%? b) What amount will he receive…

A: Future Value: It is the future worth of the annual cash flows or the current sum of money. Future…

Q: Magnum plans to retire in 28 years with an amount of $2,500,000. His financial advisor has found a…

A: Period (t) = 28 Years Interest rate (r) = 5% Future value (FV) = $2,500,000