Exercise 9-3
Margaret wants to buy a car when she graduates from Central
University 5 years from now. She believes that she will need
$29,300 to buy the car.
(a) Calculate how much money Margaret must put
into her savings account today to have $29,300 in 5 years, assuming
she can earn 10% compounded annually.
Amount $_________________ (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,975.)
(b) Calculate how much money Margaret must put into her savings account today to have $29,300 in 5 years, assuming she can earn 10% compounded semiannually.
Amount $___________________ (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,975.)
Exercise 9-3 Margaret wants to buy a car when she graduates from Central University 5 years...
Short question answers 1. Khawla wants to have AED 900,000 in cash to buy a new car 4 years from today. She expects to earn 9 percent per year, compounded annually, on her savings. How much should she deposit today to meet this purpose? 2. What is the future value of AED 85,000 deposited for 7 years at 10 percent interest compounded annually?
Ingrid wants to buy a $15,000 car in 5 years. How much money must she deposit at the end of each quarter in an account paying 5.9% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? SI (Round to the nearest cent as needed.)
1. Shroug w rok wants to invest AED 800.000 in cash to buy a new car 4 years from today. She expects to cam 7 percent per year, compounded annually on her savings. How much should she get to meet this purpose? 2. What is the present value of AED 45.000 deposited for 6 years at 10 percent per annum interest compounded annually? 3. If you wish to accumulate AED 200,000 in 5 years, how much must you deposit today...
Ingrid wants to buy a $20,000 car in 7 years. How much money must she deposit at the end of each quarter in an account paying 5.1% compounded quarterly so that she will have enough to pay for her car?
Ingrid wants to buy a $19,000 car in 7 years. How much money must she deposit at the end of each quarter in an account paying 5.6% compounded quarterly so that she will have enough to pay for her car?
Ingrid wants to buy a $22,000 car in eight years. How much money must she deposit at the end of each quarter in the account paying 5.2% interest compounded quarterly so that she will have enough to pay for her car?
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Sara has just graduated from college. She has determined that to purchase a home in 8 years she needs to accumulate $20,000 for a down payment. If Sara can earn 6% per year on her savings, what is the amount of the annual annuity payment that Sara must make at the end of each year for 8 years? Click here to view the factor table Future Value of 1 Click here to view the factor table Future Value of an...
BCOR 311 4. You want to have $25,000 in cash to buy a car 2 years from today. You expect to earn 8 percent compounded annually, on your savings. How much do you need to deposit today if this is the only money you save for this purpose? Show calculations or calculator inputs.
Jinhee Ju. 27. has an annual salary of $37,000. Jinhee wants to buy a new car in 3 years, and she wants to save enough money to make a $7,000 down payment on the car and finance the balance. Also, in her plan is a wedding. Jinhee and her boyfriend, Paul, have set a wedding date 2 vears in the future, after he finishes medical school. Paul will have a $100,000 student loan to repay after graduation. But both Jinhee...