Answer: $ 151
Rate of interest per month = 4 / 100 x 1/ 12 = 0.0033
n = 4
PVA i, n = [ { 1 - ( 1 / ( 1 + r ) n } / r ]
PVA 0.0033 , n=4 = [ { 1 - 1 / ( 1.0033 ) 4 } / 0.0033 ] = 3.96722
Monthly investment = $ 600 / 3.96722 = $ 151.24
You need $600 in 6 months for your annual liability insurance umbrella. If your investments earn...
You need $600 in 6 months for your annual liability insurance umbrella. If your investments earn 4.00% APR (compounded monthly), how much do you have to invest each month, starting next month for 4 months such that your investment will grow to just cover your insurance bill? $154 $148 $151 $145 $131
Your cable bill is $122 per month (starting next month) If your investments earn 4.00% APR (compounded monthly) how much would you have to invest today to have your investment justc worth of cable service over 12 months
Your cable bill is $122 per month (starting next month) If your investments earn 3.00% APR (Compounded monthly), how much would you have to invest today to have your investment just cover 12 months worth of cable service. $1,412 $1,469 $1,440 $1,239 $1,214
Your child is planning to attend summer camp for 3 months, starting 6 months from now. The cost of the camp is $4,000 per month, each month for the 3 months she will attend. If your investments earn 5% APR (compounded monthly) how much must you invest each month starting next month, for 3 months, such that your investment would just cover the cost of the camp?
You want to send your child to one years (12 months) of boarding school starting 6 months from now. The cost of the school is $7,000 per month for 12 months. If your investments earn 3% APR, compounded monthly, how much would you have to invest today to cover the cost of the boarding school?
You dhia is paning toatnd umner camp for 3 months tarting 6 months from now The cost of the camp is $4,000 per month, each month for the 3 months she will attend. If your investments earn 5% APR (compounded monthly) how much must you invest each month starting next month, for 3 months, such that your investment would just cover the cost of the camp? O $11,889 $11,656 $3,996 $3,918 $4,000 $4,080
You plan to give your wife a ring in 12 months for your 25th anniversary. You will buy the ring in 12 months for $30,000. How much will you have to invest each month, starting next month, for eight months to pay for the ring if your investments earn 5% APR, compounded monthly?
You are an insurance company and have sold an annuity to a customer. The annuity pays 240 monthly payments (the same each month) starting 12 months from today. The monthly paymenst are $500 per month. If your firm earns 5.00% APR (compounded monthly), on its investments, how much does it have to invest today to just cover the cost of the annuity? O $75,763 $77,278 O$72,375 $72,075 O$73,517
You plan build a sunroom on to your house in 6 months. You will pay for the sunroom in 3 installments of $10,000 each. The first payment is seven months from now and the other two payments are eight and nine months from now. If your investments earn 5% APR, compounded monthly, how much must you invest today to cover the cost of the sunroom?
You plan to buy your "dream car" when you graduate in 12 months. The cost of the car at that time will be $59,000 . How much do you have to invest each month, starting next month, for 29 months to exactly pay for the car if your investments earn 5.00% APR (compounded monthly)? Calculate your answer to the nearest dollar.