Suppose you you had the opportunity of investing $5000 in a business such that the value of the investment after 5 years would be $6300. On the other hand you could instead put $5000 in a saving account that pays 6% compounded semiannually. Which investment is better?

Q: For life insurance policies, some of the premium pays for the cost of the insurance, and the…

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Q: After several years of working, Katy has saved $125,000. If she invest that $125,000 in savings fund…

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Q: 6. How much more money would you have by investing $100,000 for 1 year into an account paying 4.2%…

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Q: Suppose that you had the opportunity of investing 5000$ in a business such that the value of the…

A: Given  that Investing 5000$ in a business increases the value to 6300$ after 5 years.

Q: (a) If $1000 is invested at 5% compounded monthly, howmuch is there after 8 months?(b) If you want…

A: Given:         Amout of compound interest is given by,A=P1+rnntWhere,A= amount, P= initial amount,r=…

Q: In its first 10 years a mutual fund produced an average annual return of 21.46​%. Assume that money…

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Q: You have decided that you would like to save $10,000 to build a house in the next 10 years. If you…

A: NOTE: Refresh your page if you can't see any equations. . here we have the future value is A=10000…

Q: As the prize in a contest, you are offered $30,000 now or $58,800 in 9 years. If the money can be…

A: Given     investment=$30000 Time (t)=9yeays Rate (r)=7% Here compound annually so  A1=P(1+r/100)^t…

Q: After several years of working, Katy has savings of $100,000. If she invests that $100,000 in a…

A: Consider the provided question, Given Principal = $100,000 Time = 20 years Rate of interest = 5%

Q: Suppose you invest $130 a month for 7 years into an account earning 10% compounded monthly. After 7…

A: When we invest a fixed sum at a fixed interval of time, it is called an annuity. The formula to…

Q: Evelyn is going to invest $3,500 and leave it in an account for 16 years. Assuming the interest is…

A: The principal amount Evelyn is going to invest is:  $3,500 Time period:  t = 16 years Interest is…

Q: Suppose that Charles has $75000 to invest. He finds that Company A is offering a 2.51% APY, Company…

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Q: If you have ​$50,000 in a bank account that is paying an interest rate of 9 percent that is being…

A: Given information P=$50,000 Rate of interest r=9% ⇒r=9100=0.09 A=2P=$100,000 n=compounded annually=1…

Q: Atticus College predicts that in 14 years it will take $250,000 to attend the college for four years…

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Q: Against expert advice, you begin your retirement savings at age 40. You plan on retiring at age 65.…

A: Recall that the annunity formula is given byPn = d(1+r1212n -1r12Where d is the monthly deposit…

Q: a wants to have $200,000 to buy a smaller retirement home in 20 years. If they can earn 4.5%…

A: To calculate the amount that Mika should deposit in his account now to have $200,000 in 20 years.…

Q: If I invest $25,000 in a savings account which has a 5.75% interest rate and is compounded…

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Q: Mrs. RF wants to provide a 200,000 graduation gift for her daughter Angel. She is now 16 yrs. old,…

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Q: · A local car wash charges $3 per wash, or one can pay $12.98 for 5 washes, payable in advance with…

A: 5) A local car wash charges $3 per wash. One can pay $12.98 for 5 washes which are payable in…

Q: Suppose that you have opened a saving account with an initial deposit of $10,000. The account offers…

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Q: What amount must be invested now to have $12,000 after 3 years if money is worth 6% compounded…

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Q: You have set up an investment that pays 7% compounded quarterly but requires deposits of $600 at the…

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Q: Olivia invested $1000 in an account that pays 2.5% interest compounded annually. Assuming no…

A: Olivia invested $1000 in an account that pays 2.5% interest compounded annually. Assuming no…

Q: Alex expects to graduate in 3.5 years and hopes to buy a new car then. He will need a 20% down…

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Q: A recent college graduate's gift from her grandparents is $22,000. How much will this provide at the…

A: Given: A recent college graduate's gift from her grandparents is $22,000 and assumes that money is…

Q: Abby and George are setting up a college fund for their newborn daughter and want to have $150,000…

A: Use compound interest formula

Q: As the prize in a contest, you are offered $29,000 now or $40,800 in 7 years. If the money can be…

A: Given that Money offered now=$29000 Money offered after 7 years=$40, 800 To find Which prize will be…

Q: Approximately how much money would Manny have if he invested $1,200 at an interest rate of 5% for 7…

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Q: Suppose that you have opened a saving account with an initial deposit of $5,600. The account offers…

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Q: Ming has some money to invest in one of two different accounts for 3 years. Account 1 requires an…

A: Solution:

Q: A homeowner planning a kitchen remodeling can afford a $900 monthly payment. How much can the…

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Q: John had a loan where two payments were required: $1000 in 14 months and $1000 in 18 months. Instead…

A: John had a loan where two payments were required: $1000 in 14 months and $1000 in 18 months. Instead…

Q: A person wants to invest $11,000 for 3 years and is considering two different investments. The first…

A: Given,  a person wants to invest $11, 000 for 3 years and is considering two different investments.…

Q: You know that you will need $100,000 for your child’s education in 18 years. If your account earns…

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Q: How long would it take for an investor to double his money at 10% interest per year, compounded…

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Q: A zero coupon bond is a bond that is sold now at a discount and will pay its face value when it…

A: given face value =$ 23000 year of maturity =19 years rate of return = 3.518% claim- what should be…

Q: You are considering investing $5,400 at 9% peryear simple interest for five years or investing the…

A: The formula for simple interest is : S.I=P×r× t100…

Q: John wants to accumulate at least $35,000 by depositing $1,900 at the end of each month into a fund…

A: The formula that we have to use here is A = d1+rknk-1rk Where A is the final amount, d is the…

Q: Suppose Becky has her choice of $20,000 at the end of each month for life or a single price of $1.5…

A: Given  Payment at the end of period R=$20,000Annual rate i=007612=000633Number of Period n=40×12=480…

Q: Alex and Toni are twins. After graduation and being finally able to get a job their plan for…

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Q: After several years of working, Katy has savings of $1000,000. If she invest that $1000,000 in a…

A: Given: Principal amount(P0)=$1000,000 rate of interest(r)= 5%=5/100 time(n)=20 years…

Q: b. Suppose you as a businessman leave an initial amount of $600 in a savings account at an annual…

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Q: when you retire in 15 years. If you can earn 3%

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Q: you want to retire with $1,500,000 in 40 years and can earn a rate of 10.8% with monthly…

A: We can find pmt using Excel .

Q: Maryam is planning to invest P150,000. Bank A is offering 7.5% compounded semi- annually while Bank…

A: The principal will be equal to 1,50,000 . From bank A , The rate = r               =7.5%…

Q: A man pays P 132,097  every end of six (6) months for a car bought on installment terms. If the man…

A: we will use present value formula.

Q: 4. a. Suppose that betwee 401(k) and your employer 8.3%compounded annually dollar, after 18 years?

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Q: When he was 12, Brian put $250 into a savings account with a 2.5% annual interest rate. Now that he…

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Q: After several years of working, Katy has savings of $100,000. If she invests that $100,000 in a…

A: Given Principal = $100,000, Time, n = 20 years and Rate of interest, r = 5%. Obtain the interest…

Q: If $18,000 is invested at 6% compounded monthly, what is the amount after 5 years?

A: Answer to question 1. The principal amount is, P = $18,000. The interest rate is r = 6%. The number…