Kourtney currently works at Bruin Productions and decided to finally plan for the future, she wants to retire in 10 years, but has not saved for retirement. She plans to deposit $500 each month into an account that pays 6.1% annual interest, compounded monthly. How much will she have when she retires?

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: Abby has decided to invest $60 at the end of each month into a retirement plan that has an annual…

A: Computation of the money that will be saved by Abby at the completion of 8 years is shown:

Q: Gabriela wants to withdraw $5,000 from her account at the end of 5 years, and $7,000 at the end of 6…

A: Since Gabriela wants to withdraw a specific amount after a certain period of time, thus, it is…

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: How much should Elizabeth have in a savings account that is earning 4.50% compounded quarterly, if…

A: Given: Particulars Amount Amount(PMT) $1,550 Years 10 Interest rate 4.50%

Q: At retirement, Maria's saving account has $620,000 in it and is earning 1.2% compounded monthly.…

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

Q: Betty wants to save $500,000 in four years. She wants to make monthly deposits into an account which…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Karren has just retired and plans to consume $9,460 from the retirement account every year for the…

A: The retirement account value is calculated as the present value of withdrawals.

Q: Susan Orman wants to pay $1500 semiannually to her granddaughter for 10 years for helping her around…

A:

Q: Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each…

A: Given: Future value FV = $150000 Payment at the beginning of each month "PMT" = $1000 Interest rate…

Q: I want 800000 for retirement in 25 years. How much would she need to deposit into the account each…

A: Future value (FV) = 800,000 Period = 25 Years Number of monthly deposits (n) = 25*12 = 300 Interest…

Q: Sherry has a goal of retiring with $375,394 by making weekly deposits into an investment account…

A: Present value =Future amount/(1+r)n n=29 years  r=rate of interest =1.4%

Q: Katy has decided she wants to put money aside for a $8000 downpayment on a house. She figures she…

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

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: Hannah wants to have $ 7500 to help pay for a new deck in 16 years. If she wants to put her money…

A: GIVEN, Future Value  = $7500 Interest rate(r)  = 6.25/100 = 0.0625 Time Period(t) = 16 years Present…

Q: You start working at age 23 and you plan to deposit $5,100 in a savings account every year (end of…

A:

Q: How much should Manvir have in a savings account that is earning 3.50% compounded semi-annually, if…

A: Present value of an investment is the sum total value of all deposits in today's period that are…

Q: Claire has a retirement account worth $975,000. The account draws 3.6% compounded monthly.  A. How…

A: Retirement account = $975,000 Interest rate = 3.6%  Compounded = Monthly

Q: Alicia has $350,000 saved for retirement in an account earning 3.2% interest, compounded quarterly.…

A: Present Value of Annuity = Annuity Amount * [ {1 / ( 1 + periodic interest rate ) } + {1 / ( 1 +…

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: Mary decided to begin saving towards the purchase of a new car in 5 years. If Mary put $500 at the…

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

Q: Francine currently has $70,000 in her 401k account at work, and plans to contribute $5,000 each year…

A: Future value of single sum/lump sum investment and annuity payments can be calculated by using this…

Q: Stephanie is going to contribute $160 on the first of each month, starting today, to her retirement…

A: Retirement refers to the period after an employee terminates its current job either voluntarily or…

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: Kelly just started retirement with $500000 in his retirement account. The retirement account has an…

A: The question is based on the concept of Financial Management. As per the Bartleby guidelines we are…

Q: Poonam wants to invest in an account today to have S4000 at the end of 8 years. If she can invest at…

A: As per the given information: Amount (A) = $4,000 Rate (r)= 4.25% Period (t) = 8 years To determine:…

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: for how many years will she be able to  make those $3,600 withdrawals before the money runs out?

A:

Q: ennifer is the owner of a video game and entertainment software retail store. She is currently…

A: The amount required to fulfill the retirement goal can be ascertained by computing the present value…

Q: Hannah wants to have $ 6500 to help pay for a new deck in 16 years. If she wants to put her money…

A: Future value required (FV) = $6500 Period of investment (n) = 16 Years Value of e = 2.7182818285…

Q: Rosina plans on saving $2000 a year and expects to earn an annual rate of 6.9 percent. How much will…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Sara decides to set up a retirement fund by depositing $24 at the end of each day for 13 years. How…

A: Let's begin by calculating Effective Interest rate Formual for Effective Interest Rate = (1  +…

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: Melissa wants to retire with $45,000 per month.she needs $4,500,000 in principal at the time she…

A: Simple interest is computed by multiplying the daily interest rate by the principal and  later by…

Q: Shaylea, age 22, just started working full-time and plans to deposit $4,500 annually into an IRA…

A: Case 1 ) Periodic Payment = $4500 annually Interest Rate = 9% p.a compounded annually. Case 2 )…

Q: Susan Orman wants to pay $1470 semiannually to her granddaughter for 11 years for helping her around…

A: The computation of the present value as follows:

Q: To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 4.8%…

A: Rate of Interest = 4.8% Compounded Monthly Time Period(t) = 18 years  n = 12 Future Value = $97,000…

Q: An engineer who is planning his retirement has decided that he will have to withdraw ₱10 000 from…

A: Retirement funds are the funds that are accumulated by an individual in his/her pre-retirement life…

Q: Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If…

A: According to the time value of money rule, a dollar sum may have different purchase capacities in…

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: Saving up for her retirement Mr. Arta begins making deposits of  $3,000 at the end of every 3 months…

A: Future value = Present value * (1+ Rate of interest) time

Q: Maria Shriver has a $27,600 debt that she wishes to repay in 4 years from today; she has $18,181…

A: This question  require us to calculate the rate of interest so that $18181 will be converted into…

Q: Amy Johnson wants to retire on $75,000 per year for her life expectancy of 20 years after she…

A: The cash flows discussed here are annuities where an equal amount is paid each period.

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

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

Q: Jennifer is the owner of a video game and entertainment software retail store. She is currently…

A: The present value function can be used to derive the present value of future cash flows, and it can…

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.