You have $2,500 on a credit card that charges a 19% interest rate. If you want to pay off the credit card in 5 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?

Q: You want to buy a $170000 home. You plan to pay $34000 as a down payment, and take out a 20 year…

A: Hi, since you have posted a question with multiple sub-parts, I will answer the first three…

Q: suppose you want to have $700,000 for your retirement in 35 years. your account earns 8%  How much…

A: Annuity- refers to a series of periodic payments made at equal time intervals. This financial…

Q: You have $2,000 on a credit card that charges a 21% interest rate. If you want to pay off the credit…

A: Monthly payment is a fixed periodic payment which is made by a borrower to the lender.

Q: Suppose you want to have $500,000 for retirement in 30 years. Your account earns 9% interest. a)…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: You have $4,500 on a credit card that charges a 15% interest rate. If you want to pay off the card…

A: Installment is the amount of periodic payment a borrower has to make to its lender in order to pay…

Q: Suppose you want to have $400,000 for retirement in 35 years. Your account earns 10% interest. How…

A: We can use the concept of time value of money. Here the monthly deposit is in the form of annuity…

Q: How much would you have to deposit at the end of the year in an account that pays an interest rate…

A: Monthly Deposit: It is the deposit made by the person over the period to accumulate a sum of money.…

Q: Imagine you have $200 today and you think to save your money in a bank for 2 years. The Bank A says…

A: Interest rate is the rate which an investor may earn on the deposits in the banks or the investment…

Q: You want to be able to withdraw $3,000 each month for 25 years. Your account earns 9% interest. How…

A: Given Information: Monthly withdrawal = $3,000 Time period = 25 years Interest rate = 9%

Q: If you want to have $60.000 in 8 years, how much do you need to deposit in the bank today if the…

A: Deposit required today = FV/(1+r)n Where FV - Future value = $60,000 r - Interest rate = 9% n -…

Q: Today, you borrowed $3,200 on a credit card that charges an interest rate of 12.9 percent,…

A: We use NPER function to calculate monthly payments (in financial calculator and excel)

Q: Suppose you want to have $300,000 for retirement in 25 years. Your account earns 5% interest. How…

A: The monthly deposits to have $300,000 after 25 years, will be a form of an annuity as the same…

Q: You have $5,000 on a credit card that charges 19% interest rate. If you want to pay off the credit…

A: Given; Principal= $5,000 Interest =19% annually or 1.58% monthly Time = 5 Years or 60 months (5*12)…

Q: If you deposit $5,000 in a bank account that pays 6% interest annually, how much will be in your…

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

Q: You have $300 and a bank is offering 5.5% interest on deposits. If you deposit the money in the…

A: FV = PV * (1 + r)^nWhere FV = Future ValuePV = Present Value = $300r = rate of interest = 5.5%n =…

Q: 1. A man has a loan of 50,000 in a bank that gives 12% simple interest. How much is the interest if…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose you are getting a loan from a bank to purchase a feed business. The interest rate on the…

A: APR(Annual percentage rate) refers to annual cost paid by the borrower for the loan taken which…

Q: You have $4,000 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: Using excel PMT function

Q: Suppose you want to have $700,000 for retirement in 25 years. Your account earns 9% interest. a)…

A: a) Hence, amount to be deposited in each month is $624.37.

Q: Suppose you want to have $300,000 for retirement in 20 years. Your account earns 4% interest. a) How…

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

Q: You have $4,500 on a credit card that charges a 21% interest rate. If you want to pay off the credit…

A: Using excel PMT function

Q: You want to buy a $330000 home. You plan to pay $33000 as a down payment, and take out a 20 year…

A: given, price =  $330000 downpayment = $33000 principal = $330000 - $33000 = $297,000 n=20 m=12…

Q: Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest. a)…

A: Future value of annuity  = P * [ (1+r)^n  - 1 ] /r  Where, r = rate of interest per period i.e.…

Q: You want to be able to withdraw $45,000 each year for 25 years. Your account earns 6% interest. a)…

A: Given: Withdraw amount =$45000Interest rate annually =6%Time=25 years

Q: Suppose you want to have $400,000 for retirement in 25 years. Your account earns 4% interest. How…

A: Using excel PMT function

Q: Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but…

A: The interest rate that did not take inflation, any fees on the loans, and compounding of the…

Q: account with an interest rate of 7.5% per year compounded monthly. You want to withdraw all your…

A: interest rate =7.5% monthly interest =7.5/12=0.625 Future value =Present value (1+i)n

Q: A man can save 10,000 per month for 2years, If the bank offers 5% compounded monthly, what is n?

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

Q: How much would you need to deposit in the account each month?

A: Annuity Payments: These are payments of equal intervals made. Examples of annuity payments include…

Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. a)…

A: Introduction Future Value: The value derived for the money invested today at a future point of time,…

Q: magine you have a credit card balance of $1,000 that you would like to pay off within one year. The…

A: The credits cards are settled on the monthly payments and are paid by monthly payments and these…

Q: You want to be able to withdraw from a savings account $800 at the end of year 1, $900 at the end of…

A: present value formula: present value =future value1+ratetime

Q: Having trouble, please help! You would like to have $1,000,000 when you retire in 35 years. How…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: (a) A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to…

A: a) Let the initial amount = P Final amount = Double of the initial amount = 2P r = 5.5% per annum =…

Q: Suppose you want to have $400,000 for retirement in 35 years. Your account earns 4% interest. Round…

A: The present value is the current value of the amount that has to be paid or received in the future.

Q: You have $5,000 on a credit card that charges a 23% interest rate. If you want to pay off the credit…

A: Credit Card Amount = $5,000 Interest rate = 23%  Time duration = 4 years

Q: You have $4,000 on a credit card that charges a 18% interest rate. If you want to pay off the credit…

A: The question gives the following information:

Q: You have $3,500 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: PMT= Present Value of annuity/{1-[1/(1+r)^n]/r} Where r =rate of interest per period i.e. 14%/12=…

Q: You have $4,500 on a credit card that charges a 14% interest rate. If you want to pay off the credit…

A: Monthly Payment: Monthly payments let a borrower pay down part of the remaining sum, which is…

Q: 2) You wish to save $150,000 for a new car. You are going to make $5000 deposits at the end of each…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You have a $22,000 credit card balance with an APR of 16.9%, compounded monthly, and you can afford…

A: PV 22000       RATE 17%       COMPOUNDING PER YEAR 12       PMT 400       TIME PMT PRINCIPAL…

Q: You have $4 000 on a credit card that charges a 18% interest rate.If you want to pay off the credit…

A: The current value of a credit card is $ 4,000 that the entity needs to pay with 18% interest. So,…

Q: Assume you just deposited $1,000 into a bank account. The current real interest rate is 2% and…

A: Given data; Deposit amount = $1000 real interest rate = 2% inflation rate = 6%

Q: a. You are planning for retirement, and would like to have $1,000,000 in the bank when you turn 65.…

A: Compounding is a concept used in investing. In case of compounding, interest is earned on both the…

Q: Suppose you decide to deposit $18,000 in a savings account that pays a nominal rate of 6%, but…

A: In order to take investment decisions, the investor will look forward for evaluation. The evaluation…

Q: You have $2,000 on a credit card that charges a 17% interest rate. If you want to pay off the credit…

A: Credit card amount due (PV) = $2000 Annual interest rate = 17% Monthly interest rate = 17%/12 =…

Q: 4. You plan to deposit P2, 500 in the bank now and another P2, 500 after 2 years. After four years…

A: Deposit in year n = Dn Withdrawal in year n = Wn D0 = P 2500 D2 = P 2500 W6 = P 6500 We need to find…

Q: You have $2,000 on a credit card that charges 18% interest rate if you want to pay off the credit…

A: The amount of loan = $2,000 Interest rate = 18% Time period = 4 years