Sarafina is making monthly payments into an annuity. She wants to have $600 in the fund to buy a new convection range in nine months, and the account pays 7.2% annual interest. What are her monthly payments to the account? To have $600 in the fund in nine months, her monthly payments must be $. (Round up to the nearest cent.)

Sarafina is making monthly payments into an annuity. She wants to have $600 in the fund to buy a new convection range in nine months, and the account pays 7.2% annual interest. What are her monthly payments to the account? To have $600 in the fund in nine months, her monthly payments must be $. (Round up to the nearest cent.)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

See similar textbooks

Similar questions

Alex Karev has taken out a$220,000 loan with an annual rate of 12 percent compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is$3,000 per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $3,500 per month? Use five decimal places for the monthly percentage rate in your calculations. a.If Alex can pay $3,000 per month, the number of years it takes for him to pay off the loan is years. B. How long will it take for him to pay off the loan if he can pay $3,500 per month?
Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity? (Please explain your answer, not in excel, please...I already asked this question 4 times)
Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each month. If interest on the account is 5% compounded quarterly, for how long does Laura have to deposit the money? Please include the cashflow diagram and what kind of annuity formula can we use on this question aside from the excel format?
Jessica wants to accumulate $13,000 by the end of 6 years in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over the 6-year period. If the bank pays interest at the rate of 5% per year compounded monthly, how much does she have to deposit each month into her account? (Round your answer to the nearest cent.)
Anna is buying $16,000 worth of rare coins as an investment. The dealer is charging her an annual interest rate of %7.2 and is using the add-on method to compute her monthly payments. a. If Anna pays off the coins in 48 months, what are her monthly payments? b. If she makes a down payment of $3,000, how much will this reduce her monthly payments? c. If she wants to have monthly payments of $325, how large should her down payment be?
Arthur wishes to have 80,000 in her bank account. How much suould she deposit in a bank account that pays 8% compounded quarterly so that after 6 years and 5 months, she can have her desired money? Choices are: 31, 889.7541648, 110.24584 and 50,000
Helen is buying a $12,375 car with a $3000 down payment, followed by 36 monthly payments of $325 each. The down payment is paid immediately, and the monthly payments are due at the end of each month. What nominal annual interest rate is Helen paying? What effective interest rate?
Sergey is selling many townhomes in Silicon Valley. To buy one of them, every month Valentina deposits $455 in a Capital One high-yield online savings account with an APR of 10.7 % (with monthly compounding). Given this information, in _____________ years that Capital One account will have the $37,000 balance Valentina needs to buy one of Sergey’s townhomes.
Juan has a goal of saving up $56,397 by making biweekly (26 per year) deposits into a savings account for the next 9 years. If the account has an annual interest rate of 0.6%, how much should each of his deposits be? Round your answer to the nearest dollar.
Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each month. If interest on the account is 5% compounded quarterly, for how long does Laura have to deposit the money?
joe decides to invest $610 dollers every month in an account that pays 1.87% monthly how nuch money will he have in the account after 33monty deposites
Kym plans to deposit $130 in an account at the end of each month for the next three (3) years so she can take a trip. If Kym's opportunity cost is 9 percent compounded monthly, how much will she have in the account in three years? Do not round intermediate calculations. Round your answer to the nearest cent. How much will be in the account if the deposits are made at the beginning of each month? Do not round intermediate calculations. Round your answer to the nearest cent.