Chapter 8, Problem 2DTM

Samantha wants to open a clothing store using her own money. She estimates that she will need about $80,000. How much should she deposit quarterly into an account with an APR of 2.4% in order to accrue enough money in ten years? Round your answer to the nearest dollar.

A student wants to save up for a car, assuming that he/she would be able to save up a certain sum every month or every three months. The car value in 4 years is expected to be 255000 LE, if the bank pays 0.14 interest compounded monthly? How much must the student put aside every month?____________ What will be the equivalent interest rate if the student saves every three months?_____________ How much must the student put aside every three months? _______________

Steve Fisher is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.)

Thomas has $1,000 in his bank account today to spend on a TV in one year. Thomas needs exactly $1,030 to purchase a new TV in one year (the price of the new TV in one year will be $1030).The investment he is looking for should have how much interest?

You are considering purchasing a car in 4 years, anticipating a purchase price of $40,000. a. How much do you need to deposit in an account today, if you want to have $40,000 in the account in 4 years, assuming the account earns 5% annual interest rate? (Assume annual compounding)b. If you deposit $30,000 in the account today, what rate of interest would you need to earn annually in order to have exactly $40,000 in the account in 4 years? (Assume annual compounding)c. If your account earns 0.25% of interest every month, and if you make an initial deposit of $10,000 today, how much do you need to deposit every month in your account in order to have exactly $40,000 in 4 years? (Assume monthly compounding)

Recently, you made multiple large purchases on your credit card totaling $17,300. The interest rate on your credit card is 15.4% per year, compounded monthly, and your statement says your minimum payment is $280 per month.   (a) How many minimum payments will you need to make in order to pay off your purchases, assuming you cut up your credit card and do not make any additional purchases? (Round your answer up to the nearest number of payments.) You will need   minimum payments.   (b) How much total interest (in dollars) will you pay by making the minimum monthly payment? (Round your answer to the nearest dollar.) $

A student wants to save up for a car, assuming that he/she would be able to save up a certain sum every month or every three months. The car value in 4 years is expected to be 255000 LE, if the bank pays 0.14 interest compounded monthly? How much must the student put aside every month?____________ What will be the equivalent interest rate if the student saves every three months?_____________ How much must the student put aside every three months? _______________   please submit answers with steps quick as possible please

You are interested in saving money for your first house. Your plan is to make regular deposits into a brokerage account that will earn 14 percent. Your first deposit of $5,000 will be made today. You also plan to make four additional deposits at the beginning of each of the next four years. Your plan is to increase your deposits by 10 percent a year. (That is, you plan to deposit $5,500 at t = 1, and $6,050 at t = 2, etc.) How much money will be in your account after five years?A. $39,362.57B. $44,873.90

A young married couple has carefully looked at their budget. After review, they can afford a monthly mortgage payment of $1,043.00. They go to their local banker and she offers them a mortgage of 5.88% APR with monthly compounding with a term of 30 years. The couple has enough savings to pay 20% down, so the mortgage will be 80% of the home’s value. With this mortgage and a 20% down payment, what priced house can the couple afford?