Toni Torres wants to save $1,200 in the next two years to use as a down payment on a new car. If her bank offers her 7% interest, what monthly payment would she need to make into an ordinary annuity to reach her goal? (Round your answer to the nearest cent.)

Q: The Weidmans want to save $40,000 in 2 years for a down payment on a house. If they make monthly…

A: Given that;Future value is $40000Interest rate is 12%We need to take the present value as $0

Q: Kaitlin wants to save money to purchase a car. She buys an annuity with yearly payments that earn…

A: FV of an annuity is that amount which is the value of total periodic amounts in the future. FV =…

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: Sarafina is making monthly payments into an annuity. She wants to have $600 in the fund to buy a new…

A: Monthly payment The minimum amount needed every month to be paid by an individual.

Q: Joe wants to have $50,000 ten years from now to use for a down payment on a house. How much should…

A: Given: Future value = $50,000 Interest rate = 4.5% Years =10

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: You are deciding to buy a car to commute to work given the comparatively low interest of 6% per…

A: A loan is a debt arrangement that provides financial assistance to a person to full fill a specific…

Q: To save for a down payment on a home, you invest in an annuity that pays 7.0% annual interest,…

A: The interest earned on the annuity can be calculated with the help of future value of annuity…

Q: Joel is considering putting a $4300 laptop purchase on his credit card, which has an interest rate…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: To help with a down payment on a home, Teresa is going to invest. Assuming an interest rate of 1.64%…

A: Here,  Future Value of Investment is $39,400 Investment Period is 8 years Therefore, Monthly…

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: Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each…

A: Annuity: Annuity helps the investors to receive regular disbursements, for that the investors are…

Q: Fatzamata and Maggie have $30,000 for a down payment on a future house. Their budget can accomodate…

A: Given: Amount available for downpayment : $30,000 Monthly mortgage payment: $1200 The amount owed to…

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: To help with a down payment on a home, Jenny is going to invest. Assuming an interest rate of 1.67%…

A: Using excel PV function

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: Joel is considering putting a $2400 laptop purchase on his credit card, which has an interest rate…

A: When something is purchased on credit, the amount can either be paid as a lump sum or in…

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: A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5…

A: Any cashflow of equal instalments can be called as an annuity. A loan with equal repayments at equal…

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: The Weidmans want to save $45,000 in 4 years for a down payment on a house. If they make monthly…

A: Computation:

Q: Rita wants to save money to open a tutoring center. She buys an annuity with a monthly payment of…

A:

Q: Without using Excel and using the formula, Cheryl is setting up a payout annuity and wishes to…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Kristy Joe deposits $130 each month in an ordinary annuity to save for a new car. If the annuity…

A: The future value of the investment is computed to find total saving can be made for the new car.…

Q: what is the size of the payments

A: Compound interest is the amount of interest earned over the interest. Under this method the…

Q: Kristi Perez puts $10,500 into an account to save money to buy a car in 12 years. She expects the…

A: We require to calculate the interest rate from following details given in the question: Current…

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: Joel is considering putting a $4300 laptop purchase on his credit card, which has an interest rate…

A: Value of loan increase at mentioned rate for a loan duration. This FV can be computed by using…

Q: Katie 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 = 0.6% Nper = Number of periods = 2*12 = 24 FV = Future value = -1500 CPT PMT =…

Q: Anna is buying ​$16,000 worth of rare coins as an investment. The dealer is charging her an annual…

A: Principal = $16,000 rate = 7.2% Interest for 48 months = $16,000*7.2%*4 = $4608

Q: Boris wants to save $27,000.00 for the down payment on a house. He already has $2,700.00, and he…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Latoya wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 7.8%…

A: Given information: Interest rate is 7.8% Future value of annuity is $6,000 Number of years is 5…

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, Time Period = 4 years*12 =48 periods (when period is monthly) Future Value of…

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: Kala wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 4.8%…

A: Here, Interest rate = 4.8% compounded annually Future value of annuity = $5,000 Time period = 3…

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: Jennifer's pension plan is an annuity with a guaranteed return of 7% per year (compounded monthly).…

A: To Find: Monthly Payout or how much she will receive per month

Q: It is estimated that you will pay about $80,000 into the Social Security system (FICA) over your…

A: The future value is the value of the equal deposits at the end of the deposit period. The…

Q: Keith has always dreamed of opening a café by the seaside. He decides he will save to help open the…

A: Calculate FVAF as below: FV=PMT1+imt×m-1imwhere, i=interest ratem=compunding factort=time period…

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: Suppose that you need $30,000 for your last year of college. You could go to a private lending…

A: Savings Account is type of deposit facility that is offered by commercial banks to their customers,…

Q: Suppose you wish to invest in an annuity so that you will have $120,000 at some future date for your…

A: We invest $350 monthly at a interest rate of 5.85% per month in order to give the child $120,000 at…

Q: Rosa Burnett needs $6,000 in three years to make the down payment on a new car. How much must she…

A: Workings: Amount…

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: Suppose that, to purchase a car, you are obtaining a personal loan from your uncle in the amount of…

A: Given information: Amount of personal loan is $75,000 Number of years to be repaid is 3 years…

Q: Suppose that you would like to have $25,000 to use as a down payment for a home in five years by…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: The owner of the campus cafe plans to open a secound location on a satillite campus in 6 years. She…

A: Annual Payment = $3,000 Interest rate (r) 11.5% Years of annuity =6 years Future Value of annuity…

Q: Sherry expects to deposit $1000 now, $3000 4 years from now, and $1500 6 years from now and earn at…

A: Semi Annual Compounding Time Period = 10 years * 2 = 20 semi annual periods Interest Rate = 12%/2 =…

Q: Dan is contemplating trading in his car for a new one. He can afford a monthly payment of at most…

A: The most expensive car that Dan might be able to afford shall be: = Amount received on trade-in +…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.