Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s bank pays 12% interest compounded semiannually. What must Tony deposit today so he will have $60,000 in 4 years?

Q: When you were born, your family started to deposit 1,000 USD each month in the bank. The bank offers…

A: Amount deposited each month in the bank = 1,000 USD  Annual deposited amount (PV) = 1,000 USD × 12…

Q: Jimmy wants to buy a taxi 6 years later. He will need $550,000 as the down payment. He initially…

A: Part (a): Answer: Annual effective rate of interest is 6.14%

Q: To help you reach a $16,000 goal 8 years fromnow, your father offers to give you $4,000 now.You plan…

A: Steps to calculate annual deposits is shown: Calculate the FV of an amount given by the father at…

Q: Can you please help me work out this problem in detail?   Tony Ring wants to attend Northeast…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Max wants to save $500,000 to give to the local clown college (possibly Duke or NCSU). Max decides…

A: In the given question we require to compute how many full deposits will Max need to make to have…

Q: 2. Andy is planning to buy a car when he graduates from college 4 years from now. The estimated…

A: One-time simple interest is often used for very relatively brief loans. Interest is often…

Q: A student plan to deposit $2,000 in the bank now and another $4,000 for the next 3 years. If he…

A: Effective interest rate is 8% Amount deposited now is $2,000 Amount deposited for next three years…

Q: You would like to have $8,000.00 in 15 years for a special vacation following graduation by making…

A: Using the PMT function in excel

Q: Tony Ring wants to attend Northeast College. He will need $66,000, 4 years from today. Assume Tony's…

A: Future Amount required (fv) = $66,000Interest Rate = 12%Type of Interest Compounded =…

Q: Rochelle Kotter wants to attend a university 5 years from now. She willneed $88,000. Assume…

A: INFORMATION : MONTHLY COMPOUNDING RATE (3%/12) 0.25% YEARS (5*12) 60 PMT (MONTHLY WITHDRAW)…

Q: Jim wants to deposit an amount anually to meet his retirement needs. Assume that he will deposit a…

A: In the span of 25 years, the interest rate is 6% on both the deposits and the withdrawals. First…

Q: How much should Ryan have in a savings account that is earning 2.50% compounded monthly, if he plans…

A: Present Value of Annuity: It represents the present worth of the future cash flows stream and is…

Q: (Refer to this word problem. , Samuel wishes to have P500,000 available for his son's college…

A: Accumulated value (F) = P 500000 t = 14 years = 28 semiannual periods r = 4.4% per annum = 2.2%…

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

A: Formula: Total No of Deposits= n×t where, n is number of compounding per 't'  t is period of…

Q: You would Ilike to have $59,000 in 5 years for the down payment on a new house following graduation…

A: Note: No intermediate rounding is done, only the answer is rounded off to nearest whole number.a)…

Q: A student plans to deposit P1,500 in a bank now and another P3,000 for the next two years. If he…

A: Amount left can be calculated using the formula of the future value.

Q: A student plan to deposit P1, 500 in the bank now and another P3, 000 for the next 2 years. If he…

A: Year Deposit Interest Balance 1. 1500 150 1650 2. 3000 165 + 300 5115 3. 3000 511.5 + 300…

Q: How much does Steve need to invest today, If he wants to have $50,000 in 15 years? He opens an…

A: Present Value = Future Value / (1+r)^n Where, r = rate of return per period i.e. 7.8%/12 = 0.65% or…

Q: Sam Long anticipates he will need approximately $225,000 in 15 years to cover his daughter's college…

A:

Q: William recently graduated from NFA University. While at NFA, William took out 4-23 a $50,000…

A:

Q: (Refer to this word problem Samuel wishes to have P500,000 available for his son's college…

A:

Q: What semi-annual deposits does Adrian have to make?

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: Your uncle is trying to figure out how much he has to have set aside today to pay for his son's…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Joe borrowed $100,000 from a local bank, which charges him an interest rate of 7% per year. If Joe…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Jacob has 5000 dollars and wants to earn 6500 dollars from the bank. If the bank gives a compound…

A: It will take 6.69 years for Jacob to reach 6500 dollars

Q: John deposits $1500 into a savings account earning simple interest at 2.19% annually. How much will…

A: Calculation of actual amount in account in future: Answer: John will have $1,582.13 in his account…

Q: To pay for your child’s education, you wish to have accumulated $25,000 at the end of 15 years. To…

A: Future Value refers to compounded value of present amount or a series of equal amount of payment…

Q: This month you want to give your daughter $2,000.00 to help pay for University. You plan to make…

A: Provided a certain rate of interest, present value is current value of future amount of money or…

Q: Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year,…

A: Amount is the sum of the initial principal amount and interest accumulated on it during the time…

Q: To pay for your education, you've taken out $18,000 in student loans. If you make monthly payments…

A: Loan Amount = $18,000 Time Period = 10 Years Interest Rate = 3% compounded monthly

Q: Karen wants to have $22,559 in her investment account in 5 years. If her bank offers an annual…

A: Following details are given in the question : Future value = $22559 Time period = 5 years Interest…

Q: How much should Timothy's dad invest into a savings account today, to be able to pay for Timothy's…

A: Solution:- When an equal amount is deposited each period at beginning of period, it is called…

Q: (Refer to this word problem. Samuel wishes to have P500,000 available for his son's college…

A: Here we have to find the present value so that P 500,000 is available after 14 years.

Q: Benjamin wants to have $12,000 in 15 years after investing in an account that earns 4.2% compounded…

A: Future  Value or Amount that Benjamin wants is $12,000 Time period is 15 years Interest rate is 4.2%…

Q: if her dad deposits R3570,00  at the end of every six months for the next four years into a bank…

A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…

Q: Janie deposits $10,000 in the bank today. Starting 3 years from now, she makes equal withdrawals of…

A: The amount at the end of 10 years will depend upon the future values of the deposits and the…

Q: a.) What is the monthly rate? b.) How many total deposits?

A: Information Provided: Amount = $750,000 Term = 4 years Interest rate = 15% compounded monthly

Q: A mother wishes to have Php800,000 eight years from today for her son’s graduation. How much should…

A: Future value (FV) = Php800,000 Monthly interest rate (r) = 0.0116666666666667 (i.e. 0.14 / 12)…

Q: o complete your last year in business school and then go through law school, you will need $20,000…

A: Calculation of Amount of Deposits and Amount of Deposits after first and last withdrawal: The amount…

Q: On his son's fifth birthday, a man decides to deposit a certain amount which will be equivalent to…

A: given, FV = 28000 NOMINAL RATE = 512%=5.5% inflation = 8.7% n = 13 years ( 18-5)

Q: Craig is saving for a $3500 sound system. He plans to deposit $175 at the end of every 3 months into…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: ) Mr. and Mrs. Lacks want to collect money for college expenses in a bank at 9% interest rate…

A: The concept of compounding is used to calculate loan payment or deposit amount. It is a concept of…

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year,…

A: Given information : Deposits 2500 Interest rate 5.50% Time period (years) 14 The given…

Q: Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The…

A: Information Provided: Return for the first 11 years = 1.40%Return for the next 16 years = 6.90%…

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

A: Time value tells that money received today has more value than that of receiving the same value…

Q: A high school student would like to save P50,000 for his graduation. How much should he deposit in a…

A: The amount required in the future is the future value of periodic deposits. This is the compounded…

Q: This month you want to give your son $500.00 to help pay for University. You plan to make these…

A: In finance, a series of cash flows at equal time intervals for a specific period is known as an…