Jasmine hopes to get her liquidity ratio up to 2.2 months soon. (Right now it's much lower.) If her annual gross salary is $36,070, her usual monthly expenses are $1,205, and she imagines that she could cut $195 from her monthly expenses if she were pressed, how much money does she need in cash/checking/savings to reach her goal of 2.2 months?

Jasmine hopes to get her liquidity ratio up to 2.2 months soon. (Right now it's much lower.) If her annual gross salary is $36,070, her usual monthly expenses are $1,205, and she imagines that she could cut $195 from her monthly expenses if she were pressed, how much money does she need in cash/checking/savings to reach her goal of 2.2 months?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 35P

See similar textbooks

Similar questions

Samantha wants to open a clothing store using her own money. She estimates that she will need about $80,000. How much should she deposit quarterly into an account with an APR of 2.4% in order to accrue enough money in ten years? Round your answer to the nearest dollar.
A middleclass woman wants a luxury bag so much that she is willing to pay the bag in installment as follows: On the first year she will pay ₱ 5,000.00 per month, on the second year ₱ 4,000.00 per month, and so on, until ₱ 1,000.00 per month will be paid on the fifth year and it’s finished. How much is the luxury bag if money is worth 9%?
The Weidmans want to save $45,000 in 3 years for a down payment on a house. If they make monthly deposits in an account paying 12%, compounded monthly, what is the size of the payments that are required to meet their goal? (Round your answer to the nearest cent.)
Kiki bought a computer for Rp. 8,000,000, -. If he bought itWith credit, he must prepare advance money and be able to pay the rest byInstallments every month for 9 months with 24% interest. If he wants biginstallments per month are exactly Rp. 800,000, - according to his income, how much advance money that he must prepare.
Stephanie is going to buy a car that costs $30,000. If she makes $650 a month payments for 48 months at 5.9% interest, how much was her down payment?
Betty wants to save $500,000 in four years. She wants to make monthly deposits into an account which pays 5%monthly. How much should she deposit at the end of each month?
An investor needs to collect $2,000 in 18 months. If she can earn 6% at the bank, compounded quarterly, how much must she deposit today? Assuming that a $45,000 shop loan is financed at 12% over 4 years, what is the monthly shop payment? Jane invests $2,000 each year, starting one year from now, in a retirement account. If the investments earn 8% or 10% annually over 30 years, the amount Jane will accumulate is closest to what amount for 8 % and 10% respectively.
Claudia intends to accumulate $35,000, so 6 months earlier she opens an account with $7,500, earning interest at 6.63% simple annual interest. 2 months later she deposits another $10,300. How much should she deposit 3 months after opening the account to achieve her goal?
A couple is trying to decide between renting or buying a house. They could buy a new home with a $15000 down payment, and monthly payments of $750 that would start one month later. Taxes and insurance are expected to reach about $100 per month. The other alternative is to lease a home for $700 per month payable in advance, plus a deposit of $600, which would be returned when the home ics vacated. Servies are estimated at $135 per month, whether you rent or buy. If you expect to be able to sell the house for $10,000 more than you paid for it in 6 years, should you buy or rent, if the nominal annual interest rate is 12% capitalisable monthly? Use present value analysis.
Zoë is buying a new car. Because of her excellent credit, Zoë is getting her financing at 3.25% APR. The car costs $25,795 (everything included), and Zoë is financing the car for 60 months. If Zoë wants her monthly payment to be $300, how much must she put down on the car at delivery?
Josh is planning to withdraw $9000 from a savings account at the end of each quarter for 3 years. If the payments are deferred for 6 years and interest is 5.75% compounded semi-annually, what amount must be invested now into the savings account? Rose has saved $90 000. If she decides to withdraw $4000 at the beginning of each month and interest is 6.25% compounded annually, for how long can she make withdrawals?
Aurora is looking to retire but is hesitant as she is unsure of how long her savings will last throughout her retirement. To date, she has saved $70,000 and wishes to receive $600 a month for spending money. At an interest rate of 6%, compounded monthly, how many months will her money last? Select one: a. 270 months b. 243 months c. 173 months d. 183 months e. 176 months