Ms. H wants to save $1500 over the next two years to use as a down payment on a new car. If her bank offers her 5% interest, what monthly payment would she need to put into an ordinary annuity in order to reach her goal? Round to the nearest cent.

Q: The Weidmans want to save $40,000 in 2 years for a down payment on a house. If they make monthly…

A: Given that;Future value is $40000Interest rate is 12%We need to take the present value as $0

Q: Spencer would like to purchase a new car for $12,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function.

Q: Sarafina is making monthly payments into an annuity. She wants to have $600 in the fund to buy a new…

A: Monthly payment The minimum amount needed every month to be paid by an individual.

Q: Joe wants to have $50,000 ten years from now to use for a down payment on a house. How much should…

A: Given: Future value = $50,000 Interest rate = 4.5% Years =10

Q: The Fergusons want to purchase their first home and need $14,300 for a down payment. They can save…

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

Q: Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet…

A: Introduction: Future Value: Represents the value of investment made today at a future point of…

Q: Jill wishes to buy a used Ford Escape for $16,000 with a 20% down payment at 7.5% for 36 months.…

A: Down payment is the initial amount paid to the seller while buying something on credit. It is a part…

Q: Kristina is going to finance new office equipment at a 5% rate over a 1.5 year term. If she can…

A: Using excel PV function

Q: If Sandy can afford car payments of $450 per month for 6 years, what is the price of a car that she…

A: Using excel PV function

Q: James and Kate would like to have $30,000 in 6 years in order to purchase anew mini van. What amount…

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

Q: Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each…

A: Future Value = $22,000 Time Period = 6 Years Interest Rate = 5.8%

Q: Your parents plan to spend $20,000 on a car for you upon graduation from college. If you will…

A: Present value is a current value of future cash flows at a given rate. It is given as: P.V =…

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: Future value of car : 255000 Time period : 4 years Interest rate : 14%

Q: Maria, a 25-year-old teacher, wants to start saving for her retirement. Maria wants a comfortable…

A: GIVEN, Age of Maria = 25  retirement age = 65 therefore number of years of savings = 65- 25 = 40…

Q: Fatzamata and Maggie have $30,000 for a down payment on a future house. Their budget can accomodate…

A: Given: Amount available for downpayment : $30,000 Monthly mortgage payment: $1200 The amount owed to…

Q: Sousan wants to save money for her retirement.  She plans on putting $200 into an Annuity each…

A: Formula:

Q: Toni Torres wants to save $1,200 in the next two years to use as a down payment on a new car. If her…

A: An annuity series in which an investor saves the amount at the end of each period for a specified…

Q: Sarah wants to save $20,000 to use for a down payment on a home. She deposits some money into a…

A: Individuals can save for expenditure by investing in financial instruments in which money grows at a…

Q: Mr. and Mrs. De Dios are planning to buy a new house despite of their limited budget. They seek…

A: Amount to be invested at the end of each year is P20,000 Time period is 5years   Interest rate is…

Q: Amanda is going to invest to help with a down payment on a home. How much would she have to invest…

A: The concept of the time value of money states that the same amount of money has more value now than…

Q: Jane has a $35,000 bank loan that she wishes to pay off in five equal annual payments with 12%…

A: given, bank loan = $35,000 installment = 5 interest = 12%

Q: To help with a down payment on a home, Jenny is going to invest. Assuming an interest rate of 1.67%…

A: Using excel PV function

Q: Hudson would like to purchase a new car for $25,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: A woman wishes to save $20,000 for a down payment on a home. She can afford to set aside $1100 per…

A: The concept of the time value of money states that the same amount of money is worth more now than…

Q: Susanna wants to purchase a house costing $212,286. She plans to put $51,874 toward a down payment…

A: Cost of house = $ 212,286 Down payment = $ 51,874 Mortgage amount (PV) = 212286-51874 = $ 160412…

Q: Dave wants to buy a $25,000 car by making a 10% down payment and financing the rest for five years.…

A: Down payment is defined as an initial partial payment at the time of purchasing an expensive items…

Q: Cheryl is setting up a payout annuity with her bank. She wants to receive a payout of $1200 per…

A: Using excel PV function

Q: Without using Excel and using the formula, Cheryl is setting up a payout annuity and wishes to…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Kristy Joe deposits $130 each month in an ordinary annuity to save for a new car. If the annuity…

A: The future value of the investment is computed to find total saving can be made for the new car.…

Q: Katie wants to save $1500 over the next two years to use as a down payment on a new car. If her bank…

A: I/Y = rate = 5%/12 = 0.6% Nper = Number of periods = 2*12 = 24 FV = Future value = -1500 CPT PMT =…

Q: Anna is buying ​$16,000 worth of rare coins as an investment. The dealer is charging her an annual…

A: Principal = $16,000 rate = 7.2% Interest for 48 months = $16,000*7.2%*4 = $4608

Q: Latoya wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 7.8%…

A: Given information: Interest rate is 7.8% Future value of annuity is $6,000 Number of years is 5…

Q: Can you help me work out this problem in detail?   Ben wants to receive $6,000 a year for 10 years.…

A:

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: Kala wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 4.8%…

A: Here, Interest rate = 4.8% compounded annually Future value of annuity = $5,000 Time period = 3…

Q: Suppose that you are obtaining a personal loan from your uncle in the amount of $20,000 (now) to be…

A: Present value: The money having at present has more value than receivable in future. Formula: FV =…

Q: Jennifer's pension plan is an annuity with a guaranteed return of 7% per year (compounded monthly).…

A: To Find: Monthly Payout or how much she will receive per month

Q: as just bought a house. She estimates that the roof will have to be renewed at a cost of €25,000…

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

Q: Calculate the amount that Jinhee needs to save each year for the down payment on a new car, assuming…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Hudson would like to purchase a new car for $12,000. How much will his monthly payments be if he…

A: Loan amount (PV) = $ 12000 Interest rate = 6.5% Monthly interest rate (r) = 6.5%/12 =…

Q: To save for a down payment on a home, suppose you decide to invest in an annuity that pays 7.0%…

A: This is the question of annuity. Annuity is the stream of constant cashflow occurring at regular…

Q: If you desire to have $10,000 for a down payment for a house in five years, what amount would you…

A: Calculation of Amount to Deposit Today:The amount to deposit today is $7,835.26.Excel Spreadsheet:

Q: Aunt Zelda’s son starts college in 5 years for which she will need $15,000 payable at the end of…

A: Aunt Zelda will buy an annuity at the beginning of year 5 that will pay $15000 for college at the…

Q: The owner of the campus cafe plans to open a secound location on a satillite campus in 6 years. She…

A: Annual Payment = $3,000 Interest rate (r) 11.5% Years of annuity =6 years Future Value of annuity…

Q: Sherry expects to deposit $1000 now, $3000 4 years from now, and $1500 6 years from now and earn at…

A: Semi Annual Compounding Time Period = 10 years * 2 = 20 semi annual periods Interest Rate = 12%/2 =…

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.