Omar wants to buy a house in another 7 years. The type of house he wants to buy is currently selling for OR 50,000, and the price will increase at a compound rate of 10% per year. Omar can presently invest in a bank fixed deposit earning a compound annual rate 14% per year. How much money must Omar deposit in the bank each year to be able to purchase a house in 7 years from now?

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A: It is assumed that, 10.5 years from now.

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A: Part (a): Answer: Annual effective rate of interest is 6.14%

Q: John has an investment opportunity that promises to pay him $16,000 in four years. He could earn a…

A: Formula used to calculate present value.

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A: Initial deposit (Year 0) = $5,000 Year 1 Deposit = $500 Year 2 Deposit = $600 Year 3 Deposit = $700…

Q: Yao currently acquired a mortgage to buy a house in Leamington Spa. This mortgage is for a value of…

A: We can use this formula to find out equal annual payment of loan amount    A = P*[…

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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: John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to…

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

Q: compounded

A: Formula to calculate rate of interest under compound interest: r = n[(A/P)^1/nt - 1]] Where r is the…

Q: JOSH WANTS TO BUY A HOUSE AND WOULD NEED A $200,000 LOAN. HE WILL AMORTIZE THE LOAN FOR OVER 15…

A: Solution Firstly lets calculate the annual installment Annual installment          = loan amount/…

Q: Nick has calculated his retirement needs.  He would like to receive $1,000 per month for 20 years…

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

Q: Mr. Lau is updating his estate plan for himself and his family. He would like to provide an income…

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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: Jace wants to save to buy a car. Jace plans to invest some of their pay every month into an account…

A: Monthly payments refers to the periodic payment. Periodic payment can be made monthly, quarterly,…

Q: Jeremy is investing $5,000 today and will do so at the beginning of another nine years for a total…

A: The future value of the annuity due is the future worth of a cash flow series receivable/period at…

Q: how much will be in the account at the end of the 20years?

A: Future Value: It is the future worth of the present annual cash flow stream and is computed by…

Q: If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $73,000 of…

A: The provided information are: Particular Value RATE 5.25% YEARS 19 PMT (MONTHLY PAYMENT)…

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A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.

Q: Samy would like to buy a house with cash ten (10) years from now. The house is currently selling at…

A: Annuity means a series of finite number of payments which are the same in size and made in equal…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…

A: Annual income (C) = $ 7000 Number of annual payments (n) = 21 Annual interest rate (r) = 5.25%

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A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

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Q: Joe would like to have $80,000 saved in 10 years. If he invests his money in an ordinary annuity…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  FV = $80,000 n = no. of compounding period 10*12…

Q: Anuonyam plans to deposit GH¢80 in an account at the end of each of the next 20 years. If the…

A: Honor code: Hi, there, Thanks for posting the question. As per our Q&A honor code, we must…

Q: Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to…

A: Before making any calculation let us first arrange these cashflows into a cashflow time line chart.…

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

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Q: Mr. Dhananjay plans to send his son for higher studies abroad after 8 years. He expects the cost of…

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Q: Harry Taylor plans to pay an ordinary annuity of $6,000 annually for ten years so he can take a…

A: Ordinary Annuity is series to equalized payments received or made over periodic interval at end of…

Q: You plan to retire in exactly 20 years' time and expect to live for 30 years after you retire. In…

A: Annuity is the concept of accepting or depositing equal amount at equal time interval over a period…

Q: Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could eam a…

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

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Q: Alexandria wants to receive $12,000 a year for 8 years. How much must Alexandria invest today in an…

A: Computation:

Q: John and Rosamond want to retire in 10 years and can save $130 every three months. They plan to…

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

Q: Wesley is offered an investment savings plan which will require him to commit a ixed amount of…

A: Part C-1 Future Value 500,000 Time period 5 years Interest rate is 6% Part C-2 Monthly deposit…

Q: Hannah wants to have $1500 to help pay for a new deck in 13 years. If she wants to put her money…

A: Present Value = Future value / e^rt Where r = 8.50% t = 13 years

Q: 1.) Miller likes to invest in annuity that will pay him Php. 5000 at the end of each month for 5…

A: Note : As per the guidelines, only first question will be answered. Kindly post the second question…

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: Ray wants to buy his son a car for his P21st birthday. If Ray’s son is turning 16 today, and…

A: Future value= Payment per month * [{((1+Interest rate)^(Number of periods))-1}/Interest rate]…

Q: Jon is planning to buy a house in 20 years. He wants to invest 870 USD now and hopes to have 9870…

A: Future Value = Present Value * (1+r)^n Where, r = rate of interest per period  n = no. of…

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

A: Solution- Present value of future withrawal ason 10.5 years=Monthly withdrawal ×Present value…

Q: Mr. White is updating his estate plan for himself and his family. He would like to provide an income…

A:

Q: What amount will he receive assuming an interest rate of 4.005%? b) What amount will he receive…

A: Future Value: It is the future worth of the annual cash flows or the current sum of money. Future…

Q: En. Amwar wants to buy a house within 3 years, and is currently saving for down payment. He plans to…

A: Answer and calculations are given below