Present value=$64000*Present value of discounting factor(rate%,time period)
=$64000/1.0825^6
=$64000*0.621487745
which is equal to
=$39,775.22(Approx).
Self-Study Problem 5.02 Helen Martin expects to need $64,000 for a down payment on a house...
Susan Wilson expects to need $79,000 for a down payment on a house in six years. How much would she have to invest today in an account paying 6.25 percent in order to have $79,000 in six years? (Round answer to 2 decimal places, e.g. 52.75.) Present value
Helen Martin is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she will need $43,000 for the down payment. If Helen can invest in a fund that pays 7.20 percent annual interest, compounded quarterly, how much will she have to invest today to
2) Mrs. Radner would like to have a $30,000 down payment for a house. How much must she invest today in order to have this down payment in 50 months? The investment is earning interest at 3.55% compounded quarterly. (4 marks)
You need to have $35,000 for a down payment on a house 7 in years. If you can earn an annual interest rate of 3.4 percent, how much will you have to deposit today?
You need to have $30,000 for a down payment on a house 6 in years. If you can earn an annual interest rate of 3.3 percent, how much will you have to deposit today?
ou need to have $25,000 for a down payment on a house 5 in years. If you can earn an annual interest rate of 3.2 percent, how much will you have to deposit today? Multiple Choice $18,828.80 $20,548.18 $20,847.13 $21,357.06 $20,694.83
1. Allen Paige is planning to invest $10,000 in a bank certificate of deposit (CD) for five years. The CD will pay interest of 9 percent compounded annually. What is the future value of Allen’s investment? How much would that investment be if Allen received simple interest only instead of compounded interest? 2. Mary Grace expects to need $50,000 for a down payment on a house in six years. How much would she have to invest today in an account...
Self-Study Problem 5.04 You have an opportunity to invest $4,800 today and receive $5,400 in three years. What would be the return on your investment if you accepted this opportunity? (Round answer to 2 decimal places, e.g. 52.75.) Return on investement
Linda Williams is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she will need $37,000 for the down payment. If Linda can invest in a fund that pays 9.20 percent annual interest, compounded quarterly, how much will she have to invest today to have enough money for the down payment?
Michelle Walker is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she will need $28,000 for the down payment. If Michelle can invest in a fund that pays 6.80 percent annual interest, compounded quarterly, how much will she have to invest today to have enough money for the down payment?