Personal Finance, Student Value Edition Plus MyLab Finance with Pearson eText -- Access Card Package (6th Edition)
6th Edition
ISBN: 9780134426839
Author: Jeff Madura
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 6FPP
Present Value. Cheryl wants to have $2,000 in spending money to take on a trip to Disney World in three years. How much must she deposit now in a savings account that pays 5% per year to have the money she needs in three years?
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Chapter 3 Solutions
Personal Finance, Student Value Edition Plus MyLab Finance with Pearson eText -- Access Card Package (6th Edition)
Ch. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Prob. 15RQCh. 3 - Prob. 16RQCh. 3 - Prob. 1FPPCh. 3 - Prob. 2FPPCh. 3 - Prob. 3FPPCh. 3 - Future Value. How much will you have in 36 months...Ch. 3 - Using Time Value to Estimate Savings. DeMarcus...Ch. 3 - Present Value. Cheryl wants to have 2,000 in...Ch. 3 - Present Value. Juan would like to give his newly...Ch. 3 - Prob. 8FPPCh. 3 - Prob. 9FPPCh. 3 - Prob. 10FPPCh. 3 - Prob. 11FPPCh. 3 - Prob. 12FPPCh. 3 - Prob. 13FPPCh. 3 - Prob. 14FPPCh. 3 - Prob. 15FPPCh. 3 - Prob. 16FPPCh. 3 - Prob. 17FPPCh. 3 - Prob. 18FPP
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- Calculating 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?arrow_forwardRefer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264arrow_forwardSuppose that Charles and Nancy are saving to buy a house. They have $20,000 in the bank, but know they will need $50,000 in 5 years. They have a savings account that offers 2.4% interest, compounded monthly. If they are planning on saving the same amount every month, how much would they have to save every month?arrow_forward
- Honey wants to go to Siargao, for four days at the age of 25. She hopes to save $10,000 by the time she turns 25, and she is only 20 years old. How much does she have to invest monthly to meet her target if she can earn 6% on her money? Provide complete savings table.arrow_forwardAngelina wants $10,000 saved in 5 years to make a down payment on a house. How much money should she invest now at 4.2% compounded annually in order to meet her goal? $______________arrow_forwardYou and your sister are planning a large anniversary party 3 years from today for your parents' 50th wedding anniversary. You have estimated that you will need $6,500 for this party. You can earn 2.6 percent compounded annually on your savings. How much would you and your sister have to deposit today in one lump sum to pay for the entire party? Can the excel and calculator solution be provided?arrow_forward
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