The amount that is required to be paid in future is known as future value of the money which in this case is $66,054. This amount can be gathered by compounding a specific sum on a monthly basis for 2 years at the rate of 7.35%, the calculation of that particular sum is called calculation of present value. It can be calculated as follows:
PV = FV * (1 /1 +r)n
Here,
FV = $66,054
r = interest rate in decimal
n = period in months
by applying the formula, we can get the following equation:
7.35 / 100 = 0.0735 , 0.0735 /12 = 0.006125
PV = $66,054 * (1 / 1+ 0.006125)24
= $66,054 * 1 / 1.1578
= $66,054 / 1.1578
= $57,051.30
Hence, Stephen would need $57,051.30 today which can become $66,054 after 2 years, if compounded at the rate of 7.35% on a monthly basis.
Question 4 (1 point) Stephen plans to purchase a car 2 years from now. The car...
Stephen plans to purchase a car 6 years from now. The car will cost $38,586 at that time. Assume that Stephen can earn 9.40 percent (compounded monthly) on his money. How much should he set aside today for the purchase? Round the answer to two decimal places.
Stephen plans to purchase a car 7 years from now. The car will cost $50,052 at that time. Assume that Stephen can earn 7.53 percent (compounded monthly) on his money. How much should he set aside today for the purchase? Round the answer to two decimal places.
Stephen plans to purchase a car 5 years from now. The car will cost $42,977 at that time. Assume that Stephen can earn 6.99 percent (compounded monthly) on his money. How much should he set aside today for the purchase? Round the answer to two decimal places.
Stephen plans to purchase a car 7 years from now. The car will cost $60,589 at that time. Assume that Stephen can earn 9.03 percent (compounded monthly) on his money. How much should he set aside today for the purchase? Round the answer to two decimal places. Your Answer:
John plans to buy a vacation home in 3 years from now and wants to have saved $60,518 for a down payment. How much money should he place today in a saving account that earns 7.95 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places
John plans to buy a vacation home in 11 years from now and wants to have saved $49,349 for a down payment. How much money should he place today in a saving account that earns 9.73 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places
John plans to buy a vacation home in 10 years from now and wants to have saved $60,326 for a down payment. How much money should he place today in a saving account that earns 9.90 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places
John plans to buy a vacation home in 5 years from now and wants to have saved $39,868 for a down payment. How much money should he place today in a saving account that earns 9.45 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places
John plans to buy a vacation home in 10 years from now and wants to have saved $70,778 for a down payment. How much money should he place today in a saving account that earns 9.08 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places
John plans to buy a vacation home in 3 years from now and wants to have saved $35,776 for a down payment. How much money should he place today in a saving account that earns 4.63 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places. Thank you.