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please answer Question 5 20 pts You would like to purchase a vacation home in 10...
You would like to purchase a vacation home in 6 years. The current price of such a home is $500,000 but the price of these types of homes is rising at a rate of 3% per year. How much would you have to invest today in nominal terms to exactly pay for the vacation home if your investments earn 5% APR (compounded annually) in nominal terms? A. $461,548 B. $373,108 C. $597,026 D. $445,510
please answer 20 pts Question 5 You've lost a lawsuit that requires you to pay $1,500 per month for 120 months starting next month. How much would you have to invest today to exactly pay for the lawsuit ,if your investments earn 3.00% APR (compounded monthly)? Calculate your answer to the nearest dollar. Write only the number with no dollar sign or comma (e.g., 3711)
You would like to vacation in Hawaii for one week each year. You can buy a time share for a vacation home in Hawaii for $18,500 today and a maintenance fee of $600 per year starting next year. You expect to sell the time share in 10 years for $19,000 . Alternatively you can just pay for the week vacation each year (starting next year). Each year will cost you $1,500 . If your investments earn 5% per year (compounded...
1) (3 pts) Bob would like to have a total savings of $30,000 in 6 years to use as a down payment on a future house purchase. He has no money saved up now, but plans on depositing $350 per month at the end of every month to save for this goal. What is the periodic interest rate Bob must earn to reach his goal? What is the Annual Percentage rate? 1 Periodic *.ㅡ I Nominal (APR)- % 2) (3...
please answer Question 3 20 pts You are managing the investments of a pension fund. You have to make a payment to your customers in 6 months. The total amount of the payments is equal to $2,000,000 How much do you have to invest each month, starting next month, for 5 months to exactly provide for the payments if your investments earn 5.00% APR (compounded monthly)? Calculate your answer to the nearest dollar. Write only the number with no dollar...
please answer Question 1 20 pts 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. Write only the number with no dollar sign or comma (e.g., 3711)
You've lost a lawsuit that requires you to pay $1,500 per month for 120 months starting next month. How much would you have to invest today to exactly pay for the lawsuit, if your investments earn 3.00% APR (compounded monthly)? Calculate your answer to the nearest dollar.
(3 pts) Bob would ike to have $20,000 in 4 years to use as a down payment on a future house purchase. He has no money saved up now, but plans on depositine 5375 per month at the end of every month to save for this goal. What is the periodic interest rate Bob must earn to reach his goal? What is the Annual Percentage rate? 1) Periodic Nominal APR) (3 pts) Sue has $30,000 to use as a down...
please answer Question 3 20 pts LO1 How much would you pay today for an asset that pays $1,000 per month, for 12 months, starting today if the interest rate is 4% APR (compounded monthly)? O $11,547 O $11,783 O $12,019 O $11,979 O $11,744
please answer Question 4 20 pts You plan to give your child a new car for her graduation in 18 months. The car costs $23,000 How much must you invest today in an account that earns 2.45% APR (compounded monthly) to exactly pay for the car? Calculate your answer to the nearest dollar. Write only the number with no dollar sign or comma (e.g., 3711)