Mary would like to save at the end 5 years for a ire down payment on a car. a. How much should she deposit at the end of each month in a savings account that pays 1.2%/a, compounded monthly, to meet her goal? b. If you currently have a part-time job, consider your hourly wage. If you do not have a job, use the minimum hourly wage in your jurisdiction. How many hours each month would you have t work, just to make those payments? Write a brief reflection on the advantages and disadvantages to long-term saving for a purchase, compared to borrowing a large sum of money and paying it off over time. Note that interest rates for savings accounts are always lower than interest rates for borrowing.

Mary would like to save at the end 5 years for a ire down payment on a car. a. How much should she deposit at the end of each month in a savings account that pays 1.2%/a, compounded monthly, to meet her goal? b. If you currently have a part-time job, consider your hourly wage. If you do not have a job, use the minimum hourly wage in your jurisdiction. How many hours each month would you have t work, just to make those payments? Write a brief reflection on the advantages and disadvantages to long-term saving for a purchase, compared to borrowing a large sum of money and paying it off over time. Note that interest rates for savings accounts are always lower than interest rates for borrowing.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Suppose you have a job that pays you $15,000 a year. You receive a credit application in the mail stating that you have been pre-approved for $3,000 in credit, but that you must make at least $18,000 a year to receive the card. What should you do?
Alex changed jobs and plans to rollover the retirement savings from his old job. His new employer offers a retirement account that earns 6%/year compounded monthly. Alex will rollover $75,000 from his old account and make monthly contributions of $500 for the next 15 years. How much money will be in the retirement account at the end of that time? Use units and context in your answer, round to two decimal places.
Dina Naples is saving money at the IBM Credit Union for a down payment on a house. How much does she have to save at the end of every month in order to accumulate a total of $12,000 at the end of five years if the money is invested at 0.5% per month?
Your part-time job pays you $175 per week. How much money would your parents need in anaccount paying 4.3% simple interest annually to equal your total yearly income from that part-time job?
Your birthday is next week and instead of other presents, your parents promised to give you $2,400 in cash. Since you have a part-time job and, thus, don’t need the cash immediately, you decide to invest the money in a bank CD that pays 8.20 percent, compounded quarterly, for the next two years. How much money can you expect to earn in this period of time? Expect to earn
a client plans to send a child to college for four years starting 18 years from now. having set aside money for tuition, she decides to plan for room and board also. She estimates these costs at $20,000 per year, payable at the beginning of each year, by the time her child goes to college. If she starts next year and makes 17 payments into a savings account paying 5 percent annually, what annual payments must she make?
Kourtney currently works at Bruin Productions and decide to finally plan for the future, she wants to retire in 10 years, but has not saved for retirement. She wants to have $250,000 when she retires in 10 years. How much should she deposit each month into an account that pays 6.1% annual interest, compunded monthly?
for just one year of spending $100 on dinner every other saturday how much would debbie pay in interest for her credit card balance of $2400 if she pays the minimum payment $48 per month? how long will it take debbie to pay off this amount.
Eleanor is switching jobs. She wants to roll over her previous jobs retirement fund of $72,000, Her new job pays every 2 weeks (26 times a year). She plans to add $450 from each paycheck into her new retirement fund, which pays 7.8% compounded every 2 weeks. She plans to stay at this new job until she retires in 18 years.. a) How much will she have in her account from the money she rolled over? b) How much will she have in her account from her future annuity? c) What will be her final total amount at retirement?
ion Megan's dad is ready to lend her money at 4.9% interest per year for 3 years of college; however he would like Megan to pay him $1,600 a year at the end of each year. Megan thinks that on getting her first job after 3 years she will get a joining bonus of $28,000. She would like to borrow as much money as possible from her dad that can be paid off with the bonus amount. How much should she borrow? Amount - $
Jane has taken a part-time job to save for a $1006 racing bicycle. If she puts $30 each week into a savings account paying 5.2% compounded weekly, how many weeks will she be able to buy the racing bicycle?
You have to decide whether or not to participate in the employer match program at your work. If you place 8% of your gross pay into a retirement account, your employer will match it. You plan to retire in 30 years. You expect to earn 6% return on your investment. How much will you have in the account if your average annual gross salary is $50,000? A. $316,232.80 B. $22,973.96 C. $45,947.92 D. $632,465.60 Using the same information as the previous question, assume that you want to increase your portion of the contribution to 10%. The employer will only match up to 8%. How much would you have in this situation? A. $692,523.80 B. $711,523.80 C. $316,232.80 D. $632,465.60

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