You would like to purchase a motorcycle that costs OMR 6800. You planned with your banker to collect the amount for this project. You decided to deposit OMR 575 each year and during 7 years. Suppose also that the bank gives an annual Interest Rate of 5%. Questions: 1. What would be the amount collected at the end of the seventh year? 2. Will you have enough money to buy the motorcycle? How much is the difference between the amount saved and the motorcycle price? Can you buy it?

Q: You want to buy a $260,000 home. You plan to pay $26000 as a down payment, and take out a 30 year…

A: When a person does not have enough money to buy any assets, he would consider taking a loan. The…

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A:

Q: Suppose you wish to start up your coffee shop.  You need to borrow $50,000 today.  You intend to pay…

A: Using PMT function of the excel to calculate monthly withdrawals

Q: You were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…

A: “Since you have posted a question with multiple subparts, we will solve first three subparts for…

Q: - Simionie needs $7000 to buy a snowmobile, but only has $6000. His bank offers a GIC that pays an…

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

Q: You are deciding to buy a car to commute to work given the comparatively low interest of 6% per…

A: A loan is a debt arrangement that provides financial assistance to a person to full fill a specific…

Q: what is the largest down payment you can make at the end of three years (immediately after the last…

A: Value at the end of saving period comprises of monthly saving and interest on those savings.…

Q: We want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: Amount of loan=$40000Rate of interest=8%

Q: How much will you invest every month, so by earning interest at 5% compounded monthly, there will be…

A: Future Value of Annuity: It computes the future value of the current annuity payment compounded over…

Q: You want to save up enough money to purchase a new computer, which costs $4,500. You currently have…

A: Here, Required Amount (FV) is $4,500 Current Amount in Account (PV) is $4,000 Interest Rate is 8%

Q: A company needs to buy a building in 4 years, and must fund the down payment from its profits. The…

A: For availing a loan for an asset, a person is required to pay some amount as down payment. Down…

Q: Your uncle will sell you his bicycle shop for P800,000, with "seller financing," at a 10.0% nominal…

A: Loan is a value which is taken from external sources like banks and this amount is repaid in fixed…

Q: You can afford payments of $950 per month for the purchase of a house. a) What is the largest…

A: Given details, Monthly payments, C = $950Interest rate, r = 3.2% p.a.  or 0.267% per month (3.2%…

Q: You are planning to buy a new car/truck (of your dreams) 7 years’ time at a cost of $134,956. How…

A: Here, The monthly rate of interest is 'r' Number of months is 'n'

Q: You are considering buying a new car worth $I5,000. You can finance the car either by withdrawing…

A: The present worth an investment is based on the time value of money concept. The present value of…

Q: Hudson would like to purchase a new car for $25,000.  How much will his monthly payments be if he…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: You want to buy a new car and have saved a down payment of $2000. The car that you want costs…

A: To solve the question, we first need to determine the amount for which the monthly payments has to…

Q: B) You would like to purchase a Car that costs OMR 50000. You planned with your banker to collect…

A: 1. The time illustrating the story as: NOTE: values in OMR

Q: You are buying a $10,000 second hand car with a down-payment of $3,000 and you finance the remaining…

A: Solution:- When a loan is taken, generally equal periodic installments are paid inclusive of…

Q: Asrtra Fishing Company is saving to buy a boat at the end of five years. If the boat costs $20,000…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: You want to purchase a new car in 8 years and expect the car to cost $31,000. Your bank offers a…

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

Q: Suppose that you wish to buy a new home that will cost you $476,301. You must put $80,000 down, and…

A: Negative amortization is where the principal to be paid increases due to non payment of interest due…

Q: The Hunters are trying to save $8000 as the down payment on a new recreational vehicle. If they can…

A: Given: Future value = $8,000 Monthly deposit = $200 Interest rate = 4%

Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

A: a. given, A=$350 n=6 r=0.5% m=12 PVA=A×1-11+rn×mr=$350×1-11+0.5%12×60.5%=$21,118.83 answer:…

Q: Suppose you want to buy a home after 3 years and you will need $15,000 for that. You open a savings…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: You need $2,000 to buy a new stereo for your car. If you have $500 to invest at 14% compounded…

A: In this question we need to compute the number of years i.e. time period. This question is based on…

Q: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

A: Down payment  It is the payment generally made in cash, in the early stages of the purchase of both…

Q: You want to buy a car with a local bank that will lend you $20000. The loan will fully amortized…

A: The amortized loan is a loan that repays with regular installments. The monthly payments of a loan…

Q: Please use formula in solving.   You are interested in buying a house worth P1,200,000. You paid…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

Q: Assume that you are going to buy a new car worth $28,000. You will be able to make a down payment of…

A: Annual rate of return for dealer is the nominal annual interest rate that is charged by the dealer…

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Future Value :— It is the value of present cash flow in future.    Future Value = Present Value ×…

Q: You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…

A: Monthly payment is calculated by the annuity for the given present value and calculated by present…

Q: You want to buy a new sports car 3 years from now and you want to save $4,200 per year, beginning…

A: Using excel FV function

Q: Unfortunately it costs $25,000, it you want to the purchases the car in five years and in the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you…

A: Given, Rate per period = 0.06 Total number of payments (nper) = 30 Present value (pv) = 300,000…

Q: You found the perfect car but costs $30,000. How much is your monthly payments if your bank charges…

A: Principal loan amount (P0) = $30,000 Monthly interest rate (r) = 0.00208333333333333 (i.e. 0.025 /…

Q: Suppose you'd like to save enough money to pay cash for your next car. The goal is to save an extra…

A: The quarterly amount will be found using excel’s pmt function. It is the minimum amount that must be…

Q: You want to by a boat and can afford payments of $350 per month for six years. The monthly interest…

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

Q: You are thinking of purchasing a house. The house costs $400,000. You have $57,000 in cash that you…

A: Question is based on the concept of Mortgages

Q: You are considering buying a new car worth $I5,000. You can finance the car either by withdrawing…

A: Given, Data 1: Price of car is $15,000. Buying of the car by withdrawing the amount from saving…

Q: you want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over…

A: Given:

Q: You were able to sell a car worth 2,100,000, which would be financed by a bank. You told your buyer…

A: Interest rate charged is calculated by RATE function in excel. Commission from car dealer is paid on…

Q: Franco wants to accumulate P150,000 in order to make the down payment for a new car. He plans to…

A: Annual investment (P) = P25,000 Future value required (FV) = P150,000 Interest rate (r) = 8% Period…