ZuoTi.Pro
Question

A cou[ple plans to save $550 per month for the next 7 years for a down...

A cou[ple plans to save $550 per month for the next 7 years for a down payment on a house. If the couple can earn an APR of 5.5% in their savings how much money will they have for the down payment?

$67,206

$56,749

$54,561

$56,199

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

$ Monthly Savings Rate of Return (5.5% / 12) Time (7 x 12) 550 per month 0.4583% 84 months FV annuity factor(0.4583 %,84) Fut

In case of any doubts or issues, please do comment below

0 0
Add a comment
Know the answer?
Add Answer to:
A cou[ple plans to save $550 per month for the next 7 years for a down...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Suppose you want to save $50,000 as a down payment to purchase a house in 7...

    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?

  • (3 pts) Bob would ike to have $20,000 in 4 years to use as a down...

    (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...

  • 1) (3 pts) Bob would like to have a total savings of $30,000 in 6 years...

    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...

  • 1. Irene plans to save and invest annually, for the next 20 years, as follows: Years...

    1. Irene plans to save and invest annually, for the next 20 years, as follows: Years 1-5: $3,500 per year Years 6-7: $0 because she will take leave from work to get an MBA Years 8-20: $5,000 per year If she can earn 6% per year, and her contributions are made at the beginning of the years, how much money will she have at the end of 20 years?

  • You plan to buy a house in 7 years. You want to save money for a...

    You plan to buy a house in 7 years. You want to save money for a down payment on the new house. You are able to place $296 every month at the end of the month into a savings account at an annual rate of 11.69 percent, compounded monthly. How much money will be in the account after you made the last payment? Round the answer to two decimal places.

  • Miriam Ramos has saved $12,000 towards a down payment on a new house. She wants to...

    Miriam Ramos has saved $12,000 towards a down payment on a new house. She wants to have a total of $40,000 and plans to buy in 5 years. How much will she have to save at the beginning of each month if she can earn 2.5% on her savings? $413.59 $412.73 $839.53 $837.78

  • Dave and Sharon Sampson recently established a plan to save $300 per month (or $3,600 per...

    Dave and Sharon Sampson recently established a plan to save $300 per month (or $3,600 per year) for their children’s education. Their oldest child is six years old and will begin college in twelve years. They will invest the $300 in a savings account that they expect will earn interest of about 2% per year over the next twelve years. The Sampsons wonder how much additional money they would accumulate if they could earn 5% per year on the savings...

  • 7. You expect to be able to save $10,000 per year for the next 20 years...

    7. You expect to be able to save $10,000 per year for the next 20 years for retirement. Assuming you will earn 8%, how much will you have in 20 years? 8. You have $15,000. Assuming you earn 6%, how long will it take for your money to double? 9. You invest $7,000, and after 8 years it grows to $12,000. What interest rate did your investment grow?

  • You just graduated from college and decide to start saving for a down payment to buy...

    You just graduated from college and decide to start saving for a down payment to buy a house 5 years from today. You estimate you will need $20,000 in 5 years for the down payment. (Note: a down payment is a deposit a home buyer must make in order to get a mortgage loan from a bank to buy the house.) 3a. Assume you can earn 6% interest (APR) on your savings, and you make a deposit in your savings...

  • You just graduated from college and decide to start saving for a down payment to buy a house 5 years from today. You est...

    You just graduated from college and decide to start saving for a down payment to buy a house 5 years from today. You estimate you will need $20,000 in 5 years for the down payment. (Note: a down payment is a deposit a home buyer must make in order to get a mortgage loan from a bank to buy the house.) 1. Assume you can earn 6% interest (APR) on your savings, and you want to make a single deposit...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT