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BONUS RECEIVED AT THE END OF THE YEAR SO INVESTED FOR 4 YEARS AND SO 4 YEARS INTEREST WILL BE RECEIVED
G2 P5-14 Time value Suppose you want to save money to pay for a down payment...
Suppose you want to save $50,000 as a down payment to purchase a house in 7 years. You plan on saving money at the beginning of each month starting today. If you can earn 3.60% APR on your investment over the time frame, how much must you save each month to reach your goal?
If you want to have $10,000 for a down payment on a new car in three' years time, assuming an interest rate of 4.5 percent compounded annually, how much money do you need to deposit as a lump sum today? A. $8712 B. $8112 C. $8650 D. $8763
a friend who owes you money has offered to pay you back by making either one lump sum payment today or payments of 5000 in one year, 7500 in two years, and 10000 in three years. assume the discount rate is 5%. A friend who owes you money has offered to pay you back by making either one lump sum payment today or payments of $5,000 in one year, $7,500 in two years, and $10,000 in three years. Assume the...
Suppose you want to save to put a down payment on a house. You will contribute $X per month, starting one month from today. If your goal is to save $50,000 in five years and you can earn a return of 1% per month, how much must you save each month? Show work a. $567.86 b. $573.01 c. $612.22 d. $653.35
3. a) b) You plan to save money for a down payment of $42,000 to purchase an apartment. You can only afford to save $1,250 at the end of every quarter int an account that earns interest at 4.50% compounded annually. How long wil it take you to save the planned amount? months O years Express the answer in years and months, rounded to the next payment period Lush Gardens Co. bought a new truck for $54,000. It paid $4,860...
Time Value Of Money Show the details of your calculations. Type your answers and supporting calculations on the sheet, and attach this in Blackboard on or before the due date. Time Value of Money Calculations A. Mike won the lottery and has the following options for his winnings: A1. $100,000 at the beginning of the year (today) A2. A lump sum payment of $160,000 at the end of the ninth year A3. $13,000 at the end of each year for...
Marti plans to save $2,000, $2,500, and $3,000, respectively, starting one year from today. You want to have as much money as Marti does three years from now but you plan to make one lump sum investment today. What amount must you save today if you both earn 4.65 annually?
You want to have $2,000,000 saved by the time you retire which is in 50 years. You can invest your money in a portfolio that is estimated to earn 10% per year. You have no money saved today but would like to start investing starting at the end of this month. How much do you need to save each month?
Suppose you win a 100 million lottery and you can choose the following two payment options: 1) receive 25 equal payments of $4,000,000- one payment today and one payment at the end of each of next 24 years. 2) one time lump sum payment of $59 million. Question 1: If you can invest your proceeds and earn 6 percent, which payment option you will choose? Questions 2: At what rate of return, would you be indifferent between the lump sum...
If you want to save $60,000 for a down payment on a home in 7 years, assuming an interest rate of 4.7 percent compounded annually, how much money do you need to save each month? A. $714 B. $634 C. $620 D. $607