You plan to buy the house of your dreams in 18 years. You have estimated that the price of the house will be $60, 619 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 7.61 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?

Q: Steven just deposited $10,000 in a bank account that has a 12 percent nominal interest rate, and in…

A: Given information : Year end Cash flow 0 $10,000 1 $10,000 2 $20,000 Discount rate…

Q: John and Rosamond want to retire in 15 years and can save $110 every three months. They plan to…

A: Individuals save for retirement using various instruments in order to have a sufficient amount…

Q: A person needs ​$18,000 immediately as a down payment on a new home. Suppose that she can borrow…

A: Continuously compounded interest rate refers to the interest rate that is calculated on the…

Q: Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each…

A: Given: Future value FV = $150000 Payment at the beginning of each month "PMT" = $1000 Interest rate…

Q: You have $35,009.41 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: According to the time value rule, dollar money available today is worth more than the same dollar…

Q: You will need to deposit $_______ each quarter.

A: Future Value of Annuity: It is computed by compounding the present stream of annuity cash flows…

Q: Kym plans to deposit $100 in an account at the end of each month for the next five years so that she…

A: The monthly payment is $100 for the next five years at 6% compounded monthly. Future value of an…

Q: Roberto and Micah plan to purchase a home for $225,000. They will pay 20% down and finance the…

A: Monthly installment = loan / cumulative PV factor Monthly installment = loan / PVAIF (0.308333%,…

Q: Julie deposits $600 at the end of each month into her savings account. If the amount earns 5.25%…

A: In finance, the term annuity depicts a sequence of cash flows over a specific time duration. Each…

Q: Susan plans to make an investment today which promises to return to her $3,000 each year for ten…

A: Using excel PV function

Q: You are planning to make monthly deposits of $450 into a retirement account that pays 10 percent…

A: The term "annuity" represents a series of equivalent periodic cash flows occurring at equal time…

Q: You deposit $1,800 into a 9% account today. At the end of two years, you will deposit another…

A: Deposit now = $ 1800 Interest rate = 9% Deposit 2 years from now = $ 3000 Purchase 5 years from now…

Q: Suppose that Jacob would like to invest at the end of each month for the next 15 years into an…

A: Ordinary Annuity refers to series of equalized payments that are made at end of period for certain…

Q: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6.…

A: Answer: Calculation of the amount that will be available to withdraw at the end of year 15: The…

Q: When your first child is born, you begin to save for college by depositing $500 per month in an…

A: The calculation is: Note: Concept utilized: 2.71828182 is a numerical constant value.

Q: You start working at age 23 and you plan to deposit $5,100 in a savings account every year (end of…

A:

Q: At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8%…

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

Q: You want to be able to withdraw $35,000 from your account each year for 15 years after you retire.…

A: Given, Amount required each year after requirement us $35000. term of payment is 15 years Rate of…

Q: Sam's family has decided that they will start depositing $100 at the end of every month into a…

A: Monthly Deposit = 100 End of month deposits Time Period =  3 years or 36 months Interest Rate = 4.6%…

Q: Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the…

A: Down payment = 20% Loan (L) = 80% of $176000 = $140800 n = 15 years = 180 months r = 8.2% per annum…

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

A: Future Value= $59,000; No. of periods= 5*4= 20 years, Interest rate per period = 4.24/4=…

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: Danny wants to save some money using the following schedule. Starting today, he will make $100…

A: Future value of annuity ( FVA) is stream of recurring cashflow compounded at specified rate to…

Q: You want to be able to withdraw $1, 500 from your account each month for 20 years after you retire…

A: The given problem can be solved using PV and PMT  function in excel. PV function computes current…

Q: what will be the amount in the account upon your retirement?

A: Future value of the retirement account is the total value that an individual will be able to…

Q: To pay for your child's education, you wish to have accumulated P15,000 at the end of 15 years. To…

A: Future value (F) = P15,000 Time period (n) = 15 years Rate of interest = 6% (compounded annually)

Q: Brayden and Noah plan to purchase a home for $140,000. They will pay 20% down and finance the…

A: An annuity is a series of cash flows that involve an equivalent amount occurring at equal time…

Q: Suppose that each week, you deposit $43 into a savings account whose annual rate is 1.8% with weekly…

A: We need to use future value of annuity formula to calculate balance of account after 14 years. FV…

Q: Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at…

A: The future value of annuity would be considered the value accumulated in future with a view to…

Q: If you borrow $30,000 from your dad for college and you agree to pay him back at 14% interest per…

A: GIVEN, LOAN (P)= $30,000 RATE(R) =14% MONTHLY INSTALLMENT(A)= $750 FREQUENCY OF COMPOUNDING (M) =12

Q: You want to have GH¢ 50,000 in your savings account five years from now, and you’re prepared to make…

A: In the given problem we need to find the Annual Deposit amount for 5 years which cumulates @9.5% to…

Q: Suzana would like to accumulate RM5,000 in 3 years in a saving account which pays 6% annual interest…

A: A.  Monthly deposit at the end of the month P= PMT * ((1+r)^n-1)/r P= future value of annuity PMT=…

Q: Every year, you receive your entire annual salary at the end of the year. This year, your…

A: Inflation rate With nominal rate and real rate, the inflation rate is calculated as show below.…

Q: When you retire at 65, you wish to be able to have $3,000 each month for 25 years. How much would…

A: Firstly calculate the present value of annuity with $3000 as PMT and 25 years, use this present…

Q: what effective annual rate of return would rayne need to earn if she deposits 1,000 per month into…

A: Monthly deposit (PMT) of $1000 is made for a period of 36 (12*30) with a future value of the deposit…

Q: An engineer who is planning his retirement has decided that he will have to withdraw ₱10 000 from…

A: Retirement funds are the funds that are accumulated by an individual in his/her pre-retirement life…

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: Mr. Gordon plans to invest $600 at the end of each month in an account that pays 12%, compounded…

A: a) An ordinary annuity may be a set of identical installments paid over an indicated sum of the time…

Q: A person needs ​$17,700 immediately as a down payment on a new home. Suppose that she can borrow…

A: Borrowing Amount = 17,700 Semi Annual Installments Time Period = 20 semi annual periods Interest…

Q: You want to have 75000 in your savings account 12 years from now, and you’re prepared to make equal…

A: Given information: Amount at the end (Future value) 75000 Time Period (in years) 12 Interest…

Q: You are planning to make monthly deposits of $460 into a retirement account that pays 10 percent…

A: Given information: Monthly deposit amount is $460 Number of years is 30, Interest rate is 10%

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: You have decided to put $130 in a savings account at the end of each month. The savings account…

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

Q: Tanya deposits ₱1,500 at the end of each quarter in her savings account. If the account earns 6.75%…

A: The amount deposited in the savings account grows on the basis of interest rate and the duration of…

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: If you save $25 per week by bringing your lunch to school for 4 years, 12 months per year, and you…

A: There are two types of annuity that we could calculate: Ordinary annuity and Annuity due. The…