You are saving money to buy a car. If you save $330 per month starting one month from now at an interest rate of 9%, how much will you be able to spend on the car after saving for 4 years?
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You are saving money to buy a car. If you save $330 per month starting one month from now at an interest rate of 9%, how much will you be able to spend on the car after saving for 4 years?
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- If you are saving the same amount each month in order to buy a new sports car when the new models are released, which of the following will help you determine the savings needed? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityCalculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?You are considering purchasing a car in 4 years, anticipating a purchase price of $40,000. a. How much do you need to deposit in an account today, if you want to have $40,000 in the account in 4 years, assuming the account earns 5% annual interest rate? (Assume annual compounding)b. If you deposit $30,000 in the account today, what rate of interest would you need to earn annually in order to have exactly $40,000 in the account in 4 years? (Assume annual compounding)c. If your account earns 0.25% of interest every month, and if you make an initial deposit of $10,000 today, how much do you need to deposit every month in your account in order to have exactly $40,000 in 4 years? (Assume monthly compounding)
- You are planning to buy a new car/truck (of your dreams) 7 years’ time at a cost of $134,956. How much will you need to save each month to be able to buy the car with cash assuming an annual interest rate of 10%?You are looking to purchase a new car, and you expect to have annual maintenance costs to keep it running. According to your calculations, you expect to incur $150 maintenance costs in the first year and expect the costs to increase by $100 for the next 7 years. You plan to keep the car for 8 years in total. How much money should you have in your savings account today, so that you do not have to worry about maintenance? The savings account pays 2% per year, compounded annually.Unfortunately it costs $25,000, it you want to the purchases the car in five years and in the meantime you can place money in a bank account that pays 10% interest per year, how much money do you need to put into your account today to be able to buy this car in five years?
- You want to save money from your businessoperation to replace a truck that has been used indelivery. The truck will be replaced after 12 yearsfrom now and the replacement cost would be about$60,000. If you earn 5% interest on your savings,how much must you deposit at the end of each yearto meet the needs?You want to buy a car without going into debt. You are budgeting $58,796 for the purchase price and you want to make the purchase in 5 years. You think you can earn 9.79% per year on any savings you generate between now and the car purchase. How much will you have to deposit at the end of each month in order for you to be able to pay cash for that car in 5 years?You have saved $4,000 for a down payment on a new car. Thelargest monthly payment you can afford is $350. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months?
- You expect to save $450 at the end of each month for the next four years towards a car. Your parents will give you $3,000 today for you to save towards the car. How much will you have in four years, if you can earn 6.25% per year on your savings towards the car? $20,618 $28,317 $5,799 $26,455You are planning to go on a big vacation in 5 years and will want to have spending money of $5,000. If you have an investment account with an APR of 4.38% that compounds monthly, how much would you need to invest now to have enough for your vacation?You want to buy a new sports car 3 years from now and you want to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5% annual compounding interest rate. How much will you have at the end of three years?
