What will your monthly payments be? How much interest do you pay?

Q: Suppose you want to have $500,000 for retirement in 30 years. Your account earns 9% interest. a)…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: What else would be added to his monthly mortgage payment?

A: A monthly mortgage payment is what we pay to the lender, to repay our loan each month. it is made up…

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $2,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: If you deposit money today in an account that pays 5% annual interest, how long will it take to…

A: Interest rate (r) = 5% Future value factor required (FVF) = 3 Period = n

Q: annual interest rate?

A: The formula to calculate the future value of current investment amount is  C*(1+r)n, where C is the…

Q: How much money would you need to have at retirement so that you can withdraw $50,000 a year for 20…

A: Present value of annuity concept is required to use in this case. Present value of annuity is the…

Q: a. How many payments are required to repay It will take payments. Rounded up to the next payment ->…

A: Here, Lease Amount is $8,600 Payment per month is $375 Interest Rate is 6.50% Payment is done at the…

Q: If the payments are monthly how would you set up the present value?

A: The concept of present value asserts that a sum of money today is worth more than the same sum in…

Q: What's the difference between an ordinary annuity and an annuity due? What type of annuity is shown…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: If you deposit money today in an account that pays 4% annual interest, how long will it take to…

A: Assume , you invest $100 double the money invested = $100 * 2 = $200

Q: How much do you need to deposit into an account with 5.4% interest compounded monthly if you want to…

A: The formula to compute monthly payment as follows:

Q: Would you rather invest in an account that pays 7% with annual compounding or7% with monthly…

A: An investor should invest the account that pays the interest compounded monthly because of greater…

Q: investment, what nominal rate of interest, compounded semi-annually must you earn?

A: Information Provided: Principal = $26,000 Years = 13 Semiannual payments to be received = $1700

Q: 1. If you deposit money today in an account that pays 6.5% annual interest, how long will it take to…

A: Future value is the value of cash in future at a particular date.Let us assume if person X has…

Q: How much should you deposit now to have that amount 5 years from now?

A: Consider the compound interest formula is A = P{ I +r/n}x

Q: Suppose you want to have $300,000 for retirement in 20 years. Your account earns 4% interest. a) How…

A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…

Q: You know you will receive $1,450 each month in Social Security payments in retirement. Assuming you…

A: The Present Value of the investment is computed using an Excel formula.  Where, Monthly amount…

Q: Molly’s total loan amount is $24,495. Using the image, how much would her monthly payments be? How…

A: Meaning 0% APR : An 0% APR offer means that you won't have to pay interest on your purchases for a…

Q: what would happen if interest rate is doubled in ordinary annuity?

A: What is an ordinary annuity? An ordinary annuity is a progression of equivalent installments made…

Q: You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan…

A: Price = $226000 Down payment = 5% Interest rate = 6.55% Monthly interest rate (r) = 6.55%/12 =…

Q: Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6…

A: Present Value of Annuity=Annuity×1-11+ratetimerate

Q: how much will you need to deposit each year

A: Retirement Planning is planning for the period after retirement. For this a certain portion of…

Q: If, as an investor, you had a choice of daily, monthly, or quarterly compounding. which would you…

A: future value =present value ×1+rmm×t (m = 365, daily compounding)future value = present value…

Q: Monthly interest rate?

A: Monthly interest rate is the interest charged on the unpaid balance of credit card.

Q: How much would you need to deposit in the account each month?

A: Annuity Payments: These are payments of equal intervals made. Examples of annuity payments include…

Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 4% interest. a)…

A: Introduction Future Value: The value derived for the money invested today at a future point of time,…

Q: hat effective annual rate of return (EAR) would Rayne need to earn if she deposits R1,000 per month…

A: Solution:- When an equal amount is paid each period at end of period, it is called ordinary annuity.…

Q: pay off the loan earlier. If you are able to do this each month, by how many years will you shorten…

A: Mortgage: It represents the loan taken by the borrower to purchase homes or other types of real…

Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How…

A: An annuity is a series of equal payments made at regular intervals. It accumulates interest on a…

Q: a. How much monthly payment is needed for each bank offer? b. How much interest would you pay for 3…

A: Loan is the amount which is to be repaid by the person along with the interest. It is the debt which…

Q: uppose you buy a home and finance $285,000 at $2,233.17 per month for 30 years. What is the amount…

A: Interest paid = total payment - financed amount

Q: How much will you have in the account 30 years from now ? What is the interest earned on the…

A:

Q: (a) How many payments will be paid? (b) What is the size of the final annuity payment?

A: Given in the question: Annuity Cash Value  $12,000 Payment at the beginning of every six…

Q: If you invest $1,000 in an account that pays an annual interest rate of 6.4%, compounded monthly,…

A: Computation:

Q: Using the average interest rate for a federal loan of 2.75% AND the average interest rate for a…

A: The number of months taken to repay a loan: The number of months it takes to repay a loan depends on…

Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 8% interest. a) How…

A: The amount to be invested each month will be compounded and will form a corpus und at the end of the…

Q: How much would Sally be willing to pay today for an annuity expected to pay $4,000 per year for 5…

A: As per the information provided:  Annuity expected - $4,000 Period - 5 years Return - 10%

Q: You want to buy a $168,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Cost of home = $168000 Down payment = 5% Loan period = 30 Years Interest rate = 6.95%

Q: Illustrate the process of obtaining the future worth of the quarterly payment series?

A: The process is described as follows: Determine the quarterly payments Determine the quarterly…

Q: What is the effective annual interest rate that she will pay on this loan? The effective annual…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: If you deposit money today in an account that pays 4%annually interest. How long will it take to…

A: Let's Say, one deposited $50,000 at 4% pa, you want it to become 1,00,000, one needs to follow the…

Q: How much are monthly payments

A: When payment for any purchase is not done immediately, but in installments, after purchase, interest…

Q: will your monthly payments be?

A: An annuity is the payment or receipt of a fixed amount at a fixed interval of time for a fixed…

Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest.a) How…

A: The question given is related to the annuity payouts, which refers to a series of payments paid over…

Q: loan for a new car costs the borrower 0.6% per month. What is the APR?

A: Given rate = 0.6% per month

Q: What would your monthly payment be for a 4-year 12,000 car loan with an APR of 7.99?

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: s. How much is his monthly payment? How much total interest will he pay?

A: Loan payments: These are payments made by the borrower to the lender for amortizing the loan…

Q: I can afford a $1500 per month mortgage payment. I found a 30 year loan at 6% interest. How big of a…

A: The present value function or concept can be used to determine the present value of a future sum or…