What interest (to the closest percent) must she earn in this account to achieve this financial objective?

Q: Your younger sister, Brittany, will start college in five years. She has just informed your parents…

A: given, A = $30,000 r=10% n = 4 years

Q: Mary Kate, Ashley, Dakota, and Elle each want to buy a new home. Each needs to save enough to make a…

A:

Q: Mr. and Mrs. Revilla decided to sell their house and to deposit the fund in a bank. After computing…

A: The question is related to the annuity due. The details are given. The present value of annuity due…

Q: If she invests $1900 into a savings account for those 5 years at 6.5% interest, compounding…

A: Given that: Future value = $2500 Time period = 5 years

Q: Summer inherits $300,000 from her grandmother, and is trying to decide how much she needs to save.…

A: Present value (PV) is the current worth of the future value. It is computed if the future value is…

Q: The cost of tuition at the college that Lacy wants to attend is $12,500 per year. Lacy’s family will…

A: Total Amount to Save = $12,500 x 30% = $3,750

Q: Your parents start saving for your sister's college education. She will begin college at age 18 and…

A: Present value and future value is computed by discounting or compounding an amount. Future value is…

Q: Molly Lincoln, a 30-year-old personal loan officer at First National Bank, understands the…

A: 1) Hence, the account balance after 65 years is $1021906.79.

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: CD stands for certificate of deposit. In this instrument, a customer can deposit money in a bank and…

Q: Christina plans to contribute $1,200 a year to her niece’s college education. Her niece will…

A: Future value of annuity refers to the total value of annual cash flows over a period of time at a…

Q: London purchased a piece of real estate last year for $83,600. The real estate  is now worth…

A: Purchase price=$83,600 Present worth=$100,100 Rate of return=0.22   ⇒Total Return=(Present…

Q: Question 1 What would be the better outcome, renting or buying and by how much? (Show your work and…

A: Pierre is deciding on whether he should buy a house or rent it. If rented the expense will be $1500…

Q: Holly wants to have $250,000 to send a recently born child to college. She sets up a 529 plan and…

A: Future value (FV) = $ 250,000 Annual interest rate (R) = 6% Number of annual investment (N) = 17…

Q: Carol wants to have $500,000 when she retired in 25 years.  Her credit union has an ordinary annuity…

A: GIVEN, FV = $500,000 N=25 M=12 R=4%

Q: Your parents will retire in 18 years. They currently have $250,000 saved, and they think they will…

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

Q: Katie recently retired and met with her financial planner. She arranged to receive $40,000 the first…

A: Solution-a1=$40,000a2=$40,000+$210     =$40,210

Q: Rhonda has saved $1,200,000 in an account. Her goal is to have 1,500,000 saved up to use as down…

A: given, pv = $1200,000 n=5 r=2.5%

Q: Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the…

A:

Q: then what is the dollar amount of income that she needed to  have to reach her objective?

A: Holding period is the total period for which an investor holds the investment i.e. the period…

Q: Beverly is considering starting her small family business in five years’ time. She has decided to…

A: Investors are supposed to estimate the value of investment with the interest rates and time period.…

Q: A 45-year-old woman decides to put funds into a retirement plan. She can save $2,000 a…

A: Here, To Find: Future value of annual savings (FV) =? Annual withdrawals made for 20 years after…

Q: Deborah is planning to buy a car in 3 years. She intends to buy the best car she can for $20 000.…

A: Future Value is the accumulated amount of present value at a future date. When interest is withdrawn…

Q: 1. To save for their new child's college education, a couple places $28,400 in an account. What…

A: Present value of a future amount With periodic compounded interest rate (i), period (n) and future…

Q: She arranged to receive $45,000 the first year. Because of inflation each year she will get $580…

A: A regular payment received by retired people is called pension. Inflation is the increase in general…

Q: Susan Orman wants to pay $1,500 semiannually to her granddaughter for 10 years for helping her…

A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

Q: Jane has been given an opportunity to receive 20,000, six years from now. If she can earn 10% on her…

A: Present value is the current value of a future cash flow discounted to the present terms at a…

Q: Your parents will retire in 19 years. They currentlyhave $350,000 saved, and they think they will…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…

A: The future value function can be used for determining the future value of a present sum, or the…

Q: Jamie wants to have $800,000 for her retirement in 25 years. How much should she save annually if…

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

Q: The Turners have 10 years to save a lump-sum amount for their child’s college education. Today a…

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

Q: Tala McLouf, a 21-year-old BBA graduate, likes to plan for her future ahead, and would like to save…

A: Since the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…

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

A: Investment = $ 125000 Annual interest rate = 4% Period = 15 Years

Q: Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and…

A: Using excel PMT function

Q: sty needs to have ​$20,000 at the end of 6 years to fulfill her goal of purchasing a small…

A: Compound interest is determined by multiplying the starting principal balance by one and then…

Q: Asha feels she needs $45,000 per year in retirement. If she receives $30,000 a year from Social…

A: Data given: Annual requirement (atleast)= $45,000 Receipt from Social Security = $30,000 Investment…

Q: Clarissa wants to fund a growing perpetuity that will pay $10,000 per year to a local museum,…

A: Present value of the growing perpetuity is the amount she needs to fund today This can be calculated…

Q: Suppose that your parents are willing to lend you $20,000 for part of the cost of your college…

A: Calculation of interest rates as follows:

Q: What annual interest rate must they earn to reach their goal, assuming they don't save any…

A: Information Provided: Term = 29 years Present value = $250,000 Future value = $2,250,000

Q: Nest egg at 4% 2b. Nest egg at 8%

A: 1.

Q: Aini wishes to have 93,000USD to purchase a car in 6 years as part of her financial goals. How much…

A: Future Value = 93,000 USD Time Period = 6 Years Interest Rate = 8%

Q: If Cheryl has four years until she gets her driver’s license, will she have enough to buy a used car…

A: Future value: It is the value of the sum of money in the future, compounded at a specific interest…

Q: Your parents agree to pay half of the purchase price of a new car when you graduate from college.…

A: The simple interest is calculated by multiplying interest rate by principal amount for a certain…

Q: as just bought a house. She estimates that the roof will have to be renewed at a cost of €25,000…

A: The given problem can be solved using PMT function in excel. PMT function computes savings/…

Q: A man needs to set up a 529 colleges saving account for his granddaughter. How much will he need to…

A: using the PMT function in excel

Q: The Rodriquez family is determined to purchase a $250,000 home without incurring any debt. The…

A: The number of year would be calculated by taking the formula Future value of Annuity = A [((1+r)n-1)…

Q: London purchased a piece of real estate last year for $84,500. The real estate is now worth…

A: Income = Investment * ( 1 + total return )

Q: Last year Jane's grandmother offered to put enough money into a savings account to generate $5000 in…

A: Interest Payment = 5000 Time Period = 1 year Rate of return = 6%