Paul needs to withdraw $2306 from the neighborhood credit union 23 years from today? The bank is paying 6.9% per year (compounded annually) for savings accounts. How much should Paul put into yhis account today? Accuracy required: two places or to the nearest cent.
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- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264You need a home loan of $95,000 after your down payment. How much will your monthly house payment be if the bank charges 6.25% APR for a loan of 25 years? (Simplify your answer completely. Round your answer to the nearest cent.)Check My Work еВook Starting next year, you will need $20,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $20,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $20,000 payments. a. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent. $
- You are a financial adviser, and your client wants to save $6,000 in order to make a downpayment for a car in two years. Your bank offers a savings account which pays 3.6% compounded quarterly. The client wishes to make deposits at the end of each three-month period. What is the amount of the annuity the client needs to pay in order to meet the goal? (Choose the closest number.) a) $718.44. b) $726.69 c) $734.16 d) $741.92 e) None of these. ENG 令 CMS2. Remi deposits $2,000 into a savings account at her bank. If the interest rate is 3.25 percent, how much money will she have in her account after 5 years? 7. You are Co introductory rate months and the rate be entered into a drawin commercial. You pay $50 a you switch? Use the smart dec mathematically and include an emA friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is offering a 6.3% interest rate on deposits and loans: How much would you have in one year if you deposited the $51 instead? How much money could you borrow today if you pay the bank $54 in one year?
- Based on Baumol (1952). Money in your savingsaccount earns interest at a 3% annual rate. Each timeyou go to the bank, you waste 15 minutes in line, andyour time is worth $10 per hour. During each year,you need to withdraw $10,000 to pay your bills.a. How often should you go to the bank?b. Each time you go to the bank, how much moneyshould you withdraw?c. If your need for cash increases, will you go to thebank more often or less often?d. If the interest rate increases, will you go to thebank more often or less often?e. If the bank adds more tellers, will you go to thebank more often or less often?You are planning on buying a new car. You need to finance $32,500 for the purchase. The bank will lend you the money at 6.60% (compounded monthly) over five years. What are the monthly payments on the loan? O $2,192.37 O $833.55 O $637.42 $7,841.74 O $653.48A friend asks to borrow $53 from you and in return will pay you $56 in one year. If your bank is offering a 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $53 instead? b. How much money could you borrow today if you pay the bank $56 in one year? c. Should you loan the money to your friend or deposit it in the bank?
- A local bank will pay you $135 a year for your lifetime if you deposit $3,000 in the bank today. If you plan to live forever, what interest rate is the bank paying? Note: Enter your answer as a percent rounded to 2 decimal places. Interest rate %You have a unique account in your local bank If you deposit $7,000 today, the bank will pay you an annual interest rate of 5.5 percent for 4 years, 6.5 percent for 3 years, and 7 percent for 7 years How much will you have in your account is 14 years? Answer is: DollarsA friend asks to borrow $45 from you and in return will pay you $48 in one year. If your bank is offering a 5.7% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $45 instead? b. How much money could you borrow today if you pay the bank $48 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $45 instead? If you deposit the money in the bank today you will have in one year. (Round to the nearest cent.) b. How much money could you borrow today if you pay the bank $48 in one year? You will be able to borrow $ today. (Round to the nearest cent.) c. Should you loan the money to your friend or deposit it in the bank? (Select from the drop-down menu.) From a financial perspective, you should as it will result in more money for you at the end of the year.
