Matt is saving to buy a new motorcyce. If he deposits $60 at the end of each month in an account that pays an annual interest rate of 5.5%, how much will he have in 15 months? Assume that the compounding is being done monthly

Q: suppose that you would like to save $20,000 over 5 years to use as a down payment for a house by…

A: Computation of monthly deposit:Hence, the monthly deposit into the account is $301.66 per month.

Q: John and Rosamond want to retire in 15 years and can save $110 every three months. They plan to…

A: Individuals save for retirement using various instruments in order to have a sufficient amount…

Q: anny is saving towards his vacation. He has determined that the total cost including airfare and…

A: Given:   Cost of vacation 5000 Monthly savings  400 Time of deposit Month-end Annual…

Q: Mark deposits $50,000 now into an account which will eam interest at a rate of 7% per year, how much…

A: Present value = $50,000 Interest rate = 7% Number of years = 4

Q: Neal plans to buy a car worth $42,000 today. He is required to pay 15  percent as a down payment and…

A: Using Excel PMT function

Q: what is the largest down payment you can make at the end of three years (immediately after the last…

A: Value at the end of saving period comprises of monthly saving and interest on those savings.…

Q: You would like to have $8,000.00 in 15 years for a special vacation following graduation by making…

A: Using the PMT function in excel

Q: Joel is considering putting a $4300 laptop purchase on his credit card, which has an interest rate…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Joel is considering putting a $2200 laptop purchase on his credit card, which has an interest rate…

A: Monthly payment includes interest payment and portion of principal payment to be paid back. Interest…

Q: Alphonse is going to put $2500 in an interest bearing account that pays 3% interest and leave it for…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: Bill wants to invest $45,000 for the next 5 years. If the investment is going to generate 8%…

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

Q: You overhear your friend saying that he is repaying a loan at P5,000 every month for the next three…

A: Using excel PV function

Q: Alvi has decided to save 5000 taka per month over the next 10 years in a DPS account that provides…

A: Amount he will get is future value of monthly deposits  and it is calculated using fv function in…

Q: Patrick makes payments of $250 per month at the end of each month. At the end of 10 years, he wants…

A: The rate of interest required to have the desired amount can be calculated with the help of rate…

Q: Truman is saving up for a $7,000 trip to Fiji. If his bank account earns 5.8% compounded monthly and…

A: Final amount required = $7000 Interest rate = 5.8% per annum  Semiannual deposit (A) = $450 Let n =…

Q: Joel is considering putting a $2400 laptop purchase on his credit card, which has an interest rate…

A: When something is purchased on credit, the amount can either be paid as a lump sum or in…

Q: Lloyd would like to save $4,300 at the end of every year for the next 3.5 years in a savings account…

A: Interest earned:  If the cash basis of accounting is being used, then the amount of interest earned…

Q: Andrew has an annuity that pays 4.4% annual interest compounded monthly and at the end of each month…

A: We need to calculate future value of annuity for the above question Formula: FV=PMTi(1+i)n-1 Where,…

Q: Marcus is expected to settle a loan by paying $6,000. What amount should he pay if he decides to…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: It is now five years later, and Adrian has saved enough money for a 20 percent down payment on a…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Bianca wants to have Php 60,000 in the future. If she decides to deposit 1000 at the end of every…

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

Q: You want to save the down payment required to purchase a vacation home at the end of four years. If…

A: FUTURE VALUE OF ANNUITY  (FVA) FORMULA: FVA=A×1+rn-1r where, r=rate of interest n = number of years…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

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

A: The periodic payment is the amount that will be paid every period until the loan amortized which…

Q: You would like to have $59,000 in 5 years for the down payment on a new house following graduation…

A: Future Value= $59,000; No. of periods= 5*4= 20 years, Interest rate per period = 4.24/4=…

Q: Assume that you have purchased a new car and after your down payment, you borrowed $10,000 from a…

A: Monthly payment can be calculated using the present vale of annuity formula. Present value of…

Q: thomas is planing to withdraw $6000 from savings account at the end of each quarter for five years.…

A: Interest rate Is 5.38% Compounded Semi annually Amount of Witdrawal is $6,000 Time period of with…

Q: Michael wants to make an investment so that he would receive $4000 every 6 months for 5 years, with…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask the…

Q: The Weidmans want to save $25,000 in 4 years for a down payment on a house. If they make monthly…

A: FORMULA FOR MONTHLY PAYMENT: PMT = P×rm1-1+rm-m×n p = principal r= rate of interest m = frequency of…

Q: How much should Timothy's dad invest into a savings account today, to be able to pay for Timothy's…

A: Solution:- When an equal amount is deposited each period at beginning of period, it is called…

Q: Joel is considering putting a $4300 laptop purchase on his credit card, which has an interest rate…

A: Value of loan increase at mentioned rate for a loan duration. This FV can be computed by using…

Q: Jun has decided to save money roughly P25 per week. Suppose he makes weekly deposits of this money…

A: Compounding is also termed as an interest on interest which means that a company calculates interest…

Q: If his new interest rate is 5% per year compounded monthly, what will be his new monthly payment?

A: When a loan is borrowed by a person, It becomes his obligation to pay the installment amount every…

Q: A student wants to save up for a car, assuming that he/she would be able to save up a certain sum…

A: Given information, Time Period = 4 years*12 =48 periods (when period is monthly) Future Value of…

Q: Xavier has plans to construct a house 10 years from now. He is planning to save $500 every month for…

A: Compound Interest= Compound Interest is the basically known as calculating interest on interest. Or…

Q: You plan to buy the house of your dreams in 18 years. You have estimated that the price of the house…

A: Monthly payment refers to the periodic payments made towards the acquisition of an asset or security…

Q: Gary has decided to save RM150 a month for 4 years. How much will be the balance in the account if…

A: In compound interest money grow with time as there is interest on the interest.

Q: Your friend Demetrius has an annuity that pays 4.6% annual interest compounded monthly and at the…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: If you borrow $30,000 from your dad for college and you agree to pay him back at 14% interest per…

A: Given, Amount borrowed = $30,000 Interest rate = 14% Monthly installment = $750 Monthly interest =…

Q: Tom wants to put aside $120 at the end of each month into an account earning 6% compounded monthly,…

A: Here we have to use the concept of annuity and concept of time value of money to find the present…

Q: You have $33,556.25 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: given, FV = $220000 r= 12% time line

Q: Kurt wants to have RM25,000 in an investment account four years from now. The account will pay 0.2…

A:

Q: If you save $25 per week by bringing your lunch to school for 4 years, 12 months per year, and you…

A: There are two types of annuity that we could calculate: Ordinary annuity and Annuity due. The…