You have really gone above and beyond in spending on your fraternity initiation party and ran up $1,500 on your parent’s credit card.  You apologize to them and promise to pay $30 per month towards paying off the balance fully.  You know that the credit card interest rate is 20%.  How long will it take you to fully pay off your good times? About 2 years About 5 and a half years About 9 years It depends

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: When you take your first job, you decide to start saving right away for your retirement. You put…

A: Annual contribution (A) = $8000 Duration of contribution (n) = 10 years r = 15% We need to find the…

Q: Suppose that you are saving for college for a child. That child was just born and you will have to…

A: Here, Amount required to pay for the tuition for four years is $65,000 annually Time duration after…

Q: Your brother has decided to ask you for advice about saving up for his teenager's college fund. He…

A: Answer: Calculation of the amount that your brother need to deposit today: The amount that your…

Q: You were drinking a cup of coffee from a coffee shop which cost you 5 dollars a day and you did this…

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

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: A friend was left $50,000 by his uncle. He has decided to put it into a savings account for the next…

A: The effective annual rate of return is the actual rate of interest investment will generate after…

Q: When you were born, your parents started to deposit monthly $2,000 in the bank. The bank offers a…

A: FV Ordinary Annuity=C×(1+i)n−1i where, C=cash flow per period i=interest rate=0.1512…

Q: You deposit $3,000 in a bank account that pays 12% interest annually. How much will be in your…

A:

Q: You just invested $5,000 in a 48-month certificate of deposit (CD) at your local bank. The CD pays…

A: In this question we need to compute the worth of CD when it matures i.e. we need to compute its…

Q: Pretend that you are saving up for a down payment on a car or house. Pretend that we get an…

A: A savings account seems to be an account that is opened by a salaried person. It is a very basic…

Q: Jenny puts $200 into a savings account today, the account pays an annual interest rate of 5%, but…

A: Compound interest: Compound interest (also known as compounding interest) is the interest on a loan…

Q: Your grandmother just died and left you $100,000 in a trust fund that pays 6.5% interest. You must…

A:

Q: How much money can they expect to withdraw?

A: Future value of ordinary annuity refers to the sum total value of all deposits made periodically at…

Q: Juan decided to start savings for college.  He deposited $500 into an account which earns 4% simple…

A: Simple interest is the interest that is determined on the original deposit made to the account. In…

Q: You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a…

A: Given, Future value is $8,000 Present value is $4,000 Rate is 6%

Q: To save up for your dream business, you committed to deposit P2,000, starting today, every month in…

A: Present value (PV)= P2,000 Interest rate (r)= 6% Number of period (n)= 5 Future value (FV)

Q: You receive a $3,000 check from your grandparents for graduation. You decide to save it toward a…

A: Time period can be calculated by using the formula of the future value which tells the value of the…

Q: ohn has just borrowed an amount of K5,000 to pay his school fees. The loan is to be repaid in equal…

A: Loans are paid by the annual payment that carry the payment of loan and payment of interest also but…

Q: Josie wants to be able to celebrate her graduation from CSULA in 4 years. She found an annuity that…

A: *As per bartleby in case of interlinked question, answer first 3 only   Here in the given question…

Q: 1. Jefferson and Rio Morales are trying to decide on an account to help save for college for their…

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

Q: Max wants to save $500,000 to give to the local clown college. Max decides he can afford to deposit…

A: Given:Max want to save $500000He can deposit $10000 each month Which pay 4% monthly interestTo…

Q: Today is your 23rd birthday.  Your aunt just gave you $1,000.  You have used the money to open up a…

A: Future value: The future value is the amount that will be received at the end of a certain period.…

Q: per year for four years to go to college. Your father invested P16300 per year in a 10.163% account…

A: You must do proper planning for the future that must be done on time and within interest rate so…

Q: Ed wants to have $10, 000 in 5 years. He opens a savings account in a bank which pays 7.2% interest…

A: Amount Required after 5 years = $10,000 Interest rate = 7.2% Interest Rate Monthly (r) = 7.2%/12 =…

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: John and Susan just opened savings accounts at two different banks. Each deposited $1,000. John's…

A: Given information: Deposit amount $1,000 John bank pays 10% annual rate Susan bank pays 9.5% annual…

Q: A group of employees decided to invest a portion of their 13th-month pay. After 3 months from today,…

A: Here, Withdrawal Amount is P5,000 Time Period  is 12 months Interest Rate (r) is 5% Compounding…

Q: he college tuition is expected to increase with an average of 5% per year for the next 5 years. The…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: Flora is planning ahead for a 3-month world tour to celebrate completing graduate school. The trip’s…

A: given, FV = $7000 N =4 R=5% M=12

Q: Suzanne starts her college education four years from now. For her college education, she is going to…

A: Future value is the worth of an asset at a later date. It is the present value multiplied by the…

Q: Zoe Robinson has several credit cards, on which she is carrying a total current balance of $14,000.…

A: An amount that is charged by the bank on the credit cards when a cardholder uses the credit card for…

Q: You have just deposited $12,000 into an account that promises to pay you an annual interest rate of…

A: Calculate the future value at the end of the year 8 as follows: Future value = Present…

Q: You have decided to open a savings account and put $11000 in your local bank at an interest rate of…

A: Formula used:

Q: To save the down payment, Mary deposited monthly in a savings account earning 2.5% compounded…

A: Monthly payment to achieve goal of down payment can be calculated by using this formula PMT…

Q: You owe $32,000 to your parents for funding some of your college fees. You promise to make 5 annual…

A: In the given question we require to calculate the interest rate parents are charging on borrowing of…

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: Patricia French received $500,000 from aninsurance company after her husband’s death. Patricia wants…

A: Monthly payment: It can be defined as the payment made by the borrower on a monthly basis.

Q: Your grandmother just died and left you $40,000 in a trust fund that pays 6.5% interest. You must…

A: We need to calculate the annual withdrawal at the beginning of each year for 4 years after which…

Q: You just found out that your parents have $40,559 already saved when you are about to enter college,…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: Tuition is expected to increase with an average of 5% per year for the next 5 years. The annual cost…

A: Mutual funds are pool of funds invested by the mutual fund companies on behalf of the investors…

Q: Your great-aunt wants to help with your college graduation party. She has just placed $5,000 dollars…

A: Future value is the expected value of the current amount at a future date at a given rate of return.…

Q: A high school student received from his wealthy ant $15,000. He decided to put it in an account…

A: Here, Amount Received today (PV) is $15,000 Amount Required (FV) is $25,000 Interest Rate (r) is…

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%

Q: Your awesome grandma has decided to use part of her retirement savings to help you through college.…

A: In finance, the term annuity represents a stream of equivalent periodic cash flows over a specific…

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…