Sofia and Manuel are purchasing a home. They wish to save money for 15 years and purchase a house that has a value of $200,000 with cash, if they deposit money into an account paying 5% interest, compounded monthly, how much do they need to deposit each month in order to make the purchase? Round your answer to the nearest cent, if necessary.

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

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

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: Kiki bought a computer for Rp. 8,000,000, -. If he bought it With credit, he must prepare advance…

A: The portion of the purchase price of goods and services that are paid immediately at the time of…

Q: Rosa Burnett needs $4,000 in three years to make the down payment on a new car. How much must she…

A: Future value required for car = $4,000 Interest Rate = 2.5% Time period = 3 years

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: John and Rosamond want to retire in 15 years and can save $150 every three months. They plan to…

A: A= $150 r=6.72% n=15 m=4

Q: James wants to buy a car in 5 years. The car is expected to cost $30,000 at that time. How much…

A: The amount required to invest today can be calculated as the present value of lump sum

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

A: Life insurance provides financial coverage provided by insurance companies after the death of…

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: Roberto and Micah plan to purchase a home for $225,000. They will pay 20% down and finance the…

A: Monthly installment = loan / cumulative PV factor Monthly installment = loan / PVAIF (0.308333%,…

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: 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: Bob and Pat want to purchase a vacation home in ten years and need $45,000 for a down payment. How…

A: Time value tells that money received today has more value than that of receiving exact value later…

Q: Sarah wants to have $20,000 in nine years. If she puts the money in an account which pays 4%…

A: For solving we have to calculate present value of future value considering compounding monthly…

Q: Hannah wants to have $ 7500 to help pay for a new deck in 16 years. If she wants to put her money…

A: GIVEN, Future Value  = $7500 Interest rate(r)  = 6.25/100 = 0.0625 Time Period(t) = 16 years Present…

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: Lena is regularly saving money in order to buy a new car at the end of 7 years. If the car is 30,000…

A: Cost of Car is 30,000EUR Interest rate is 2% Time period is 7 years or 7×12 = 84 months To Find:…

Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…

A: Given, Discounting rate=6%12 months=0.5% per month Period=5 years×12 months=60 months

Q: 4/ Julieta and Eric are purchasing a home. They wish to save money for 15 years and purchase a house…

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

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: Max wants to save $500,000 to give to the local clown college. Max decides he can afford to deposit…

A: Given:Max want to save $500000He can deposit $10000 each month Which pay 4% monthly interestTo…

Q: Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the…

A: Down payment = 20% Loan (L) = 80% of $176000 = $140800 n = 15 years = 180 months r = 8.2% per annum…

Q: How much money should she save at the beginning of each 3 months

A: Value at a future point of time is equal to sum of savings made and interest on those savings.…

Q: Suppose a newlywed couple is planning to buy a home two years from now. To save the down payment…

A: A concept through which it is studied that the current worth of money is higher than its future…

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

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

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

A: Present value refers to the current valuation for a future sum. Investors determine the present…

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: Hannah wants to have $ 6500 to help pay for a new deck in 16 years. If she wants to put her money…

A: Future value required (FV) = $6500 Period of investment (n) = 16 Years Value of e = 2.7182818285…

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: John and Rosamond want to retire in 8 years and can save $230 every three months. They plan to…

A: In this problem we have to convert interest into quarterly interest and period into quarterly period…

Q: a.) Find Jin’s monthly payment. b.) If after 10 years, he decided to pay off the loan, calculate…

A: a.) PMT = P x r / [1 – {1 / (1 + r)^n}] Here, PMT = Periodic Payment P = Present Value or Amount…

Q: Ms. H 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 = 0.416667% Nper = Number of periods = 2*12 = 24 FV = Future value = $1500 CPT…

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: Nabil is considering buying a house while he is at university. The house costs $200 000 today.…

A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…

Q: Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If…

A: According to the time value of money rule, a dollar sum may have different purchase capacities in…

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: Your aunt is planning to invest in a bank CD that will pay 7.5% interest semi annually. If she has…

A: SEMI ANNUAL INTEREST RATE  (7.50%/2) 3.75% PERIOD (4*2) 8 PRESENT VALUE $5,000 PMT 0

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: Hannah wants to have $ 7500 to help pay for a new deck in 13 years. If she wants to put her money…

A: The amount required to invest today can be calculated with the help of future value function

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: Arnold and Helene would like to visit Austria in two years to celebrate their 25th wedding…

A: Future Value = Present Value(1+Interest÷100)× (1+Interest÷100)

Q: tarting 10.5 years from now and continuing for the next 20 years. He has started his account with an…

A: Annuity is a concept of uniform series of equal payment throughout the given time period. It can be…