In three years you plan to take a family vacation to Florida at an estimated cost of $3500. If you can earn an average of 4% per year, how much must you invest today to have the funds needed for the planned vacation? O A. $3,937 O B. $3,920 Oc. $3,111 O D. $3,125

Q: Yani has $12,000 for investment purposes. His bank has offered the following three choices: Choice…

A: The annual worth refers to an equivalent uniform distribution of the present value of any payment or…

Q: What is the monthly payments you must make on this loan?

A: Pricipal=? n=60 months Rate=12%

Q: You plan to go to Asia to visit friends in three years' time. The trip is expected to cost a total…

A: Total amount required for the trip is $ 10,000 Maturity amount of certificate of deposit = $ 5,000 *…

Q: To help you reach a $16,000 goal 8 years fromnow, your father offers to give you $4,000 now.You plan…

A: Steps to calculate annual deposits is shown: Calculate the FV of an amount given by the father at…

Q: Paul and Donna Kelsch are planning a Mediterranean cruise in 5 years and will need $5,500 for the…

A: periodic payment of sinking fund formula: FV=Periodic payment×1+rmm×n-1rmperiodic…

Q: a. How much money will your parents have at the end of four years to help you with graduate school,…

A: Answer A: Computation of present value using a financial calculator: N = 4 I/Y = 6% PMT = $10,000 FV…

Q: You wish to save money on a regular basis to finance an exotic holiday to a 1. country of your…

A: We can you raise at the end of the five years : Deposit GHS1,000 annually, at the end of each year…

Q: How much must you save each year

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: An aunt gifts you with $12,000, but only after you invest it for one year. She gives you two…

A: INTEREST RATE  4.2% 7.1% PERIOD   12 12 PMT  0 1000 PRESENT VALUE $12,000 0

Q: To fund your dream around-the-world vacation, you plan to save $1,275 per year for the next 13 years…

A: Computation of future value:

Q: Craig is planning for a holiday in Asia when he graduates from university in 3 years. He estimates…

A: Here, Amount of Monthly Deposit is $250 Interest Rate is 2.4%  Compounding Period (m) is Monthly i.e…

Q: Sam wants to have $160,000 in four years from now. She found an investment, earning 6% per year,…

A: The amount that should be invested now to earn a certain sum of money in the future is equal to the…

Q: Brian White is planning to save up for a trip to Europe in three years. He will need $8,700 when he…

A: Given: Future value (FV) = $8700 Discount rate (r) = 6% = 0.06 Number of periods (n) = 3

Q: How much must you invest each month, for 5 months, starting next month

A: SOLUTION:- $6,163 needed per month for 8 months, starting 12 months from now. Interest rate =…

Q: You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a…

A: Given, Future value is $8,000 Present value is $4,000 Rate is 6%

Q: Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s…

A: The present value function or formula can be used to derive the present value of a future sum or…

Q: What will be the maturity value of ₱12,000 invested for four (4) years at 15% compounded quarterly?…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: It is likely that plane tickets will increase 6.5% in each of the next three years. The cost of the…

A: The present value of the future money required considering the interest rate and period of the money…

Q: You plan to spend a semester abroad in France. You will live in France for 10 months starting 9…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You are contributing money to an investment account so that you can purchase a small piece of…

A: Annuity refers to the fixed regular periodic payments that are paid monthly, quarterly,…

Q: You are contributing money to an investment account so that you can purchase a house in six (6)…

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

Q: You want to be able to travel and your yearlong trip. During your trip your travel fund will earn…

A: A fund is a collection of money set aside for a specific purpose. A fund can be created for a…

Q: You have researched your dream around-the-world vacation and determined that the total cost of the…

A: PRESENT VALUE  0 PMT (MONTHLY PAYMENT) 215 INTEREST RATE (9.6%/12) 0.008 FUTURE VALUE 21000

Q: Aaron is planning to get a loan for a house costing $320,000. He plans to make a downpayment of 15%…

A: A mortgage is a loan provided by the bank to the individual to buy the house. An individual can…

Q: You want to save P85,000 for future family vacation (three years from now). If the bank pays 8.5%…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You wish to have $4,000 in 2 years to purchase a new entertainment system. How much money (to the…

A: Future value of an annuity: It represents the future value of the present annuity stream of cash…

Q: Sofia wants to start saving immediately for a trip to Hong Kong one year from now. She wants to…

A: An annuity due is a series of equal cash flows made at the start of each period. The future value of…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly.  Note:…

A: We will apply the formula for calculating the future value of the money so that we can calculate the…

Q: The price of a new car is $32,000. Assume that an individual makes a down payment of 25% toward the…

A: Cost of car = $32,000 Down Payment = 25%  Interest Rate = 6% compounded monthly Loan amount = Cost…

Q: You have researched your dream around-the-world vacation and determined that the total cost of the…

A: Monthly saving (S) = $200 r = 9.5% per annum = 0.7917% per month Let n = Number of months needed to…

Q: You just purchased a parcel of land for $40,000. To earn a 9% annual rate of return on your…

A: Future value of a present amount The future value (FV) for a present value (PV) that earns annual…

Q: You want to invest $8,100 annually beginning now in order to accumulate $39,600 for a down payment…

A: Annuity means where regular payment is made at the end of regular period and full amount with…

Q: today on an 3-year trip during which time you will incur expenses of $40,000 at the end of each…

A: Present value of future cost is cost after reducing the interest cost from that money we can get…

Q: ou plan to graduate in 4 years, and then travel to Italy for 3 weeks. The trip will cost $1,500. If…

A: Using excel PV function

Q: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A…

A: The future value of the cash flow is the future worth of a cash flow compounded at a certain rate of…

Q: d. Jane wants to set aside funds to take an around the world cruise in four years. Jane expects that…

A: Solution d: Desired future amount = $30,000 Interest rate = 8% Period = 4 years

Q: It is likely that airplane tickets will increase 6% in each of the next 3 years. The cost of a plane…

A: Annual increase in tickets = 0.06 Interest rate = 0.01 or 1% Year Increase in ticket price Ticket…

Q: You are a financial adviser. Your client is thinking of investing $600 at the end of every six…

A: The time value of money is used to calculate the future value of the accumulated money invested as…

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

A: Savings refers to amount held by an individual after discharging all expenses as taxes, rent,…

Q: Debra Moore needs $20,000 3 years from now. How much should she invest today in order to reach her…

A: Here we can use Present value  formula  to find investment  today

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: 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: How much could you withdraw at the end of each of the next 20 years?

A: Time value of money (TVM) means that the value of money received at the present day will be than…

Q: A condominium generates $2,000/month rent, has $350/month in associated expenses, and can be sold in…

A: Given: Rent = $2000/month Expenses=$350/month Sale price = $325000 Number of years = 3 years Number…

Q: A). Sun will be starting a 5-year training program in 23 months’ time. His mother, Moon, has…

A: Note: It is a case where the number of questions asked is more than one and no specified question is…