Question 2 Jessie wants to buy a home theater set in cash in two years’ time. It is estimated that the price of a home theatre set is RM7500. She opens an account that pays 6% compounded every 6 months. How much should Jessie put into this account so that she will have RM7500 at the end of two years?
future value of an amount = amount invested* (1+r)^n
here,
future value = RM7500
amount invested =to be found out
r = 6% per annum =>6%*6/12 =>3% for 6 months period
=>0.03.
n = 2 years * 2 semi annual period per year
=>4.
now,
7500 =amount invested *(1.03)^4
=>amount invested = 7500 / 1.03^4
=>7500 / 1.12550881
=>6,663.65
Jessie should put RM 6,663.65 in account to have RM 7500 at end of two years at the given rate of interest
Question 2 Jessie wants to buy a home theater set in cash in two years’ time....
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?
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.)
John plans to buy a vacation home in 3 years from now and wants to have saved $60,518 for a down payment. How much money should he place today in a saving account that earns 7.95 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places
John plans to buy a vacation home in 11 years from now and wants to have saved $49,349 for a down payment. How much money should he place today in a saving account that earns 9.73 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places
John plans to buy a vacation home in 10 years from now and wants to have saved $60,326 for a down payment. How much money should he place today in a saving account that earns 9.90 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places
John plans to buy a vacation home in 5 years from now and wants to have saved $39,868 for a down payment. How much money should he place today in a saving account that earns 9.45 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places
John plans to buy a vacation home in 10 years from now and wants to have saved $70,778 for a down payment. How much money should he place today in a saving account that earns 9.08 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places