How much should you invest now at 6% compounded semiannually to have $8.500 to buy a car in 25 years?

Q: You invest $ 20.000 in a bank account to buy a house at annual interest rate 15 per year, compounded…

A: Given information: Present value is $20,000 Interest rate is 15% per year compounded monthly Number…

Q: Suppose you have selected a new car to purchase for $19,500. If the car can be financed over a…

A: Interest Payment: It refers to the financial or monetary charge levied on the borrowed amount.

Q: Suppose you finance a $10000 car over 8 years at car an interest rate of 14% per month. How much is…

A: Loan amount (PV) = $ 10000 Period = 8 Years Number of monthly payments (n) = 8*12 = 96 Interest rate…

Q: ould you have to deposit now to have

A: Present value would be equivalent value today required to be deposited today to receive that much…

Q: How much will you need to save per month to have $200,000 after 12 years, if your account earns 5%…

A: The formula used as follows: Future value of annuity=Payment×1+rn-1r

Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 6% interest. How…

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

Q: You have $300 to invest. If you put the money into an account earning 13% Interest compounded…

A: Following details are given in the question : Present value = 300 Time period = 8 years Interest…

Q: You would like to save $250,000for retirement. If you are planning to retire 30 years from now, how…

A: The monthly deposit is the amount that is paid every month until the maturity of the period.

Q: The annual income from a rented house is $35,000. The annual expenses are $5,000. If the house can…

A: Annual Income = $35,000 Annual Expenses=$5,000 Net Cashflow =$35,000 -$5,000 =$45,000 Ending…

Q: Suppose you borrow 11,000 for 5 years at 6% towards the purchase of a car. What would be the monthly…

A: The computation of monthly payments:Hence, the monthly payment is 212.66.

Q: d) You want to retire in 45 years with $1 million in the bank. You think you can get an average of…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: How much will you have in 40 years if you save $3,000 each year and your account earns 8% interest…

A: In the given question we require to calculate the future value of payment made every year of $3000…

Q: You invest 10.000 dolar in a bank account to buy a house at annual interest rate 14 per year,…

A: Given: Investment = 10,000 Interest rate = 14% Years = 10

Q: You want to invest a lump sum at 5% interest so as to have $100,000 in 20 years. If you find an…

A: The Present Value of a lump sum: The Present Value of a lump sum can be computed with the formula:

Q: How much money would you need at the present to pay for 4 years of college tuition if the first year…

A: Cost for first year = $40,000 Cost for second year = $40,000 + $5,000 = $45,000 Cost for third year…

Q: How much do you need to invest today, at 0.5% interest per year, in order to have $75,000 in 15…

A: Future value (FV) = $ 75000 Interest rate (r) = 0.5% Period (n) = 15 Years

Q: How much should Linda Bryan set aside now to buy equipment that costs $9,000 in one year? The…

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

Q: If Say you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by…

A: Car Cost = Future Value Required = 40,000 N = 60 months Monthly Interest Rate = 0.25% Monthly…

Q: You have a client who wants to buy a house in 2 years. He needs $40,000 for a down payment. If he…

A: in this problem we have to calculate quarterly interest rate and from that we can get present value.

Q: A businessman wants to have P500, 000 four years from now. What amount should he invest now if it…

A: Given information : Expected amount 500000 Interest rate for first two years 6% Interest rate…

Q: You put $200 per month in an investment plan that pays an APR of 4.5%. How much money will you have…

A: Monthly deposit (D) = $200 Monthly APR (r) = 0.00375 (i.e. 0.045 / 12) Monthly period (p) = 336…

Q: If you need P350,000 for a down payment on a house in 3 years, how much money must you invest today…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: You wish to have $40,000 dollars in 6 years. How much do you need to deposit today if the rate is…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: A businessman wants to have $500,000 four years from now. What amount should he invest now if it…

A: Final amount required = $500000 Let the amount to be invested today = P Interest rate for first 2…

Q: You would like to save for a car. You would like to have $20,000 saved in 5 years. You decide to…

A: Recurring deposit is an annuity where same amount is deposited with an institution over cardinal…

Q: How much will you pay for a $10,000 automobile in 20 years if the infla-tion rate averages 3 percent…

A: Information Provided: Present amount = $10,000 Term = 20 years Inflation rate = 3%

Q: You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how…

A: Future value of the retirement account should be (FV) = $250000 Number of periods of month payments…

Q: How much do you need to invest today if you will also invest $2,700 at the end of every year for 39…

A: Accumulated amount (AV) = $1,000,000 Rate of return (r) = 0.065 Annual deposit (D) = $2,700 Period…

Q: HOW MUCH SHOULD YOU DEPOSIT AT THE END OF EACH MONTH INTO A INVESTMENT ACCOUNT THAT PAYS 8% COMPOUND…

A: Calculation of Amount of Deposits and Total Interest:The amount of deposits is 338.49 and total…

Q: You would like to save $250,000 for retirement. If you are planning to retire 30 years from now, how…

A: Dear student we need to use excel for calculation of monthly deposit(PMT) by using PMT functions.

Q: you want to have $15,000 at the end of 5 years. if you can earn a return of 3.2% annually, how much…

A: given, fv= $15000 r=3.2% n=5 years

Q: Say, you want to buy your dream car, costing $40k, in 5 years. You are saving up for that by making…

A: Car cost = Future Value Required = 40,000 Time Period = 60 months Monthly Deposit = ? First Month…

Q: Suppose you buy a home and finance $285,000 at $2,223.17 per month for 30 years. What is the amount…

A: Loan amount = $ 285,000 Monthly payment = $ 2223.17 Period = 30  Years Number of monthly payments =…

Q: Suppose you invest in an annuity that pays 5% annual interest, compounded quarterly. If you…

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

Q: How much do you need to save each year for 30 years in order to have $775,000, assuming you are…

A: Given information: Future value amount is $775,000 Interest rate is 8% Number of years is 30

Q: You buy a house for $250,000 and pay $50,000 down.  The loan is for 25 years at 6% monthly.  What is…

A: Monthly payments of loan can be calculated by Equated monthly instalment formula which is derived…

Q: ow $ 150,000 for a house with 10% down payment at 8% compound annual interest rate for 30 years,…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

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 invest $27,000 today to accumulate $30,390 to buy a car. If you can invest at an…

A:

Q: How much will you need to save per month to have $200,000 after 12 years, if you account earns 5%…

A: Compound interest = P"(1+r%/n)^tn Since the final amount is given , we need to calculate the…

Q: How much must a person save monthly at an interest of 7.3% to buy a $15,000 car in five years?…

A: given, Loan amount is $15000 Nominal rate is 7.3% Inflation rate is 6%

Q: You buy a house for $250,000 and pay $50,000 down.  What is the monthly payment if you finance the…

A: Loan amount acquired by the borrower for financing the purchase of any financial asset is the net…

Q: Trying to buy a new house. (1) In the case of paying $200,000 in a lump sum plus $1,000 in…

A: To evaluate the given options, we shall first calculate the present value of both and accordingly…

Q: The annual income from a rented house is $26,400. The annual expenses are $7200. If the house can be…

A: Present Value: It refers to the amount of money received today is having more worth than the same…

Q: You borrowed $100,000 for a period of 30 years at fixed APR of 5.5% to buy an apartment.  What is…

A: Formula: Monthly payment = ( Present value of loan ) / [  ( 1 - ( 1 + r )-NT ) / r / n ] R =…

Q: Suppose you buy a home and finance $265,000 at $2,223.17 per month for 30 years. What is the amount…

A: Cost of home= $265,000 Financing pattern= $2,223.17 per month for 30 years Amount of Interest=?

Q: A man wants to buy a $33,000 car.  He will put 20 % down and finance the rest over 5 years.  How…

A: Given information: Purchase price = $33,000 Loan = $33,000 -20%×$33,000 = $26,400 Term = 5 years…