Question

ASSESSMENT 5. You want to buy a condo 5 years from now, and you plan to save $3,000 per year, beginningat the end of each yea
0 0
Add a comment Improve this question Transcribed image text
Answer #1

5. b. $16911.28
1 Future value at the end of 5 years = $ 16,911.28 =FV(6%,5,-3000,,0)

I can only answer 1 question at a time, so I am answering only question 5. Please do rate me and mention doubts, if any, in the comments section.

Add a comment
Know the answer?
Add Answer to:
ASSESSMENT 5. You want to buy a condo 5 years from now, and you plan to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • 5) a) What is the present value of $40 earned 2-years from now if compounding was...

    5) a) What is the present value of $40 earned 2-years from now if compounding was semi-annual and the interest rate is annually 3%? A "black box" just paid $20, which is expected to grow by 3% when the interest rate is 7% forever, what is the present value of this "black box" b) What is the future value of an annuity due with a $15 cash flow, 4% annual interest with quarterly compounding three-years from now? c) d) If...

  • You have $1,500 to invest. You have 2 choices: savings account A, which earns 8.75 percent...

    You have $1,500 to invest. You have 2 choices: savings account A, which earns 8.75 percent compounded annually or savings account B, which earns 8.50 percent compounded monthly. Which account should you choose and why? B; because the quoted rate is higher A; because it has a higher effective annual rate B; because it has a higher effective annual rate A; because it has the higher stated rate A; because it has the higher quoted rate

  • You plan to buy a house in 5 years. You want to save money for a...

    You plan to buy a house in 5 years. You want to save money for a down payment on the new house. You are able to place $319 every month at the end of the month into a savings account at an annual rate of 8.30 percent, compounded monthly. How much money will be in the account after you made the last payment? Round the answer to two decimal places.

  • Assume that you plan to buy a condo 5 years from now, and you estimate that...

    Assume that you plan to buy a condo 5 years from now, and you estimate that you can save $3 ,500 per year. You plan to deposit the money in a bank that pays 4% interest, and you will make the first deposit at the end of the year. How much will you have after 5 years? How will your answer change if the interest rate is increased to 6% or lowered to 3%?

  • You plan to buy a house in 8 years. You want to save money for a...

    You plan to buy a house in 8 years. You want to save money for a down payment on the new house. You are able to place $455 every month at the end of the month into a savings account at an annual rate of 10.91 percent, compounded monthly. How much money will be in the account after you made the last payment

  • You want to buy a car, and a local bank will lend you $25,000. The loan...

    You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 4% with interest paid monthly a. What will be the monthly loan payment? Round your answer to the nearest cent. b. What will be the loan's EAR? Round your answer to two decimal places. Finding the required interest rate Your parents will retire in 23 years. They currently...

  • You have a savings account that earns 5% Interest, compounded annually. A friend has offered you...

    You have a savings account that earns 5% Interest, compounded annually. A friend has offered you an investment opportunity, he says that if you invest In his new business, he will pay you $34,000 a year for the next five years. What is the maximum amount you would be willing to invest in your friend's business? (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor from the PV...

  • What is the present value of an annuity that pays $352 at the beginning of each...

    What is the present value of an annuity that pays $352 at the beginning of each year for 47 years if the annuity earns 12% annually? An account pays 2% annual interest compounded monthly. What is the effective interest rate on this account? If you deposit some money into a bank account today, to the nearest year, how long will it take to triple your deposit if it earns 11% annually? What is the present value of an annuity that...

  • 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.

  • 1,You have decided that you when you retire 40 years from now, you want to buy...

    1,You have decided that you when you retire 40 years from now, you want to buy a lodge in Northern Manitoba that you believe will cost $100,000 at that time. You have found an investment opportunity that will yield an interest rate of 7.5% annually, compounded annually. How much will you need to invest now to reach your goal? Multiple Choice $5,541.94 $6,426.89 $4,091.67 $8,832.02 2. All else equal, holding the interest ready steady, the further out a cash flow...

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