You have a client who wants to buy a house. He needs $40,000 for a down payment and has $30,000 right now. If he can earn 5% compounded quarterly, on his savings, how long will it take to reach his goal?
Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…
A: Given:
Q: Suppose yoU want to buy a new house. You currently have $15,000, and you figure you need to have a…
A: Cost of house is $150,000 Interest rate is 7.5% Current amount we have is $15000 Down payment 10%…
Q: I want to buy a $195,000 house and plan to pay 20% as a down payment t and take a 3.8% APR loan for…
A: To find the monthly payment, we will use 'PMT' function in excel. As down payment is 20% ($39,000),…
Q: Stephanie is going to buy a car that costs $30,000. If she makes $650 a month payments for 48 months…
A: Calculate the present value of loan as follows: Present value of loan is $27,731.31
Q: You are looking to purchase a new car, and you expect to have annual maintenance costs to keep it…
A: Please see the next step for the solution
Q: how much can they spend on the home at each of the following rates? (
A: Time value of money (TVM) means that the amount of money received in the present period will have…
Q: You are buying a house and have saved a down payment of $15,000. You can afford a monthly payment of…
A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…
Q: How much will you invest every month, so by earning interest at 5% compounded monthly, there will be…
A: Future Value of Annuity: It computes the future value of the current annuity payment compounded over…
Q: 1) What monthly nominal rate of return must his investment earn for him to achieve his goal? 2) If…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: You are thinking about buying a house.You find one you like that costs $200,000. You learn that your…
A: Opportunity cost is the cost that has been sacrificed by choosing an alternative among two by the…
Q: Raya is saving for a new car. He needs to have OMR 21000 for the car in three years. How much will…
A: Given: Future value = OMR 21,000 Interest rate = 8% Years = 3
Q: Suppose you want to buy a new house. You currently have $15 000 and you figure you need to have a…
A: Current amount (P) = $15000 House cost = $150000 Down payment and closing costs needed (F) = (10% +…
Q: You want to buy a $243,000 home. You plan to pay 10% as a down payment, and take out a loa with a…
A: As per Bartleby honor code, when multiple sub-parts of a question are asked, the expert is required…
Q: You are thinking of purchasing a house. The house costs $200,000. You have $29,000 in cash that you…
A: The value for mortgage would be considered as the agreement between the bank and individual party…
Q: Suppose that Charles and Nancy are saving to buy a house. They have $20,000 in the bank, but know…
A: The concept of the time value of money states that the same amount of money has more value today…
Q: Hudson would like to purchase a new car for $25,000. How much will his monthly payments be if he…
A: The monthly payment amount can be calculated with the help of present value of annuity function
Q: Ricardo wants to buy a large fishing boat so that he can go deep-sea fishing. He needs $100,000 and…
A: Present Value of annuity refers to the present value of all the future payments of and series of…
Q: Varian wants to have $500,000 in an investment account six years from now. The account will pay 6.96…
A: The periodic payments are made at regular intervals and are known as annuities. The payment interval…
Q: You want to retire in 30 years with $2,500,000 in your retirement account, how much do you need to…
A: Future value required (FV) = $ 2,500,000 Interest rate (r) = 8% Number of annual payments (n) = 30
Q: You need to have $15,000 in five years to pay off a home equity loan. You can invest in an account…
A: Here, we need to calculate the present value which needs to be deposited or kept aside to pay the…
Q: You are buying a $10,000 second hand car with a down-payment of $3,000 and you finance the remaining…
A: Solution:- When a loan is taken, generally equal periodic installments are paid inclusive of…
Q: Asrtra Fishing Company is saving to buy a boat at the end of five years. If the boat costs $20,000…
A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…
Q: Your friend is considering investing in a two-year MBA program. Tuition costs will be $60,000 for…
A: An investment is a type purchase of an item or thing with the goal of earning income or rising in…
Q: Oshri is planning on his retirement, so he is setting up a payout annuity with his bank. He is now…
A: given infromation present age = 30 years and he wants to retire when he is 60 interest rate =…
Q: Suppose you want to buy a home after 3 years and you will need $15,000 for that. You open a savings…
A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…
Q: You want to save money from your businessoperation to replace a truck that has been used indelivery.…
A: Given information: Replacement cost after 12 years is $60,000 Number of years is 12, Interest rate…
Q: You want to have $35,000 in cash to buy a car 3 years from today. You expect to earn 3.6 percent,…
A: In this we have to calculate present value of future value.
Q: Hannah wants to have $ 1500 to help pay for a new deck in 10 years. If she wants to put her money…
A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…
Q: A middleclass woman wants a luxury bag so much that she is willing to pay the bag in installment as…
A: Monthly payment in year 1 = P 5000 Monthly payment in year 2 = P 4000 Monthly payment in year 3 = P…
Q: You'd like to have $1,000,000 saved in 35 years so that you can retire a little bit early. If you…
A:
Q: suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should…
A: Following is the answer to the given question
Q: You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you…
A: Given, Rate per period = 0.06 Total number of payments (nper) = 30 Present value (pv) = 300,000…
Q: The Miller family wants to have $60,000 for future renovations for their home. They currently have…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: You are graduating in two years and are thinking about your future. You know that you will want to…
A: FV is the future worth of cash flows that have occurred in the past or present.
Q: If you want to accumulate $400,000 and you have $17,000 saved now, how many years will it take if…
A: GIVEN, PV = $17000 FV = $400,000 A= $490 R=4% M=12
Q: You are planning to build a vacation home. Your rich uncle offers you a $35,000 loan at 10.5%…
A: The number of years that will take to pay off the loan at given interest rate can be calculated by…
Q: Sam can afford to spend $500 per month on a car. He figures he needs half of it for gas, parking,…
A: Maximum affordable monthly amount = $500 Monthly amount for instalment = $250 ($500 / 2) Rate of…
Q: Suppose you buy a house for $175,000. One year later, the market price of the house has risen to…
A: a) Profit on Investment = Ending price - Beginning price Profit on Investment = $195,000 - $175,000…
Q: You want to have $350,000 saved up by the time you retire in 30 years, How much would you need to…
A: Future Amount need to be saved = $350,000 Time period = 30 years Annual interest rate = 6.5%
Q: Suppose you're fresh out of college and have a new job where you're able, by being frugal, to put…
A: Time Value of Money states that a dollar today is worth more than a dollar later because it has…
Q: Suppose that, to purchase a car, you are obtaining a personal loan from your uncle in the amount of…
A: Given information: Amount of personal loan is $75,000 Number of years to be repaid is 3 years…
Q: You plan to buy an apartment for $300,000, but you have only $8,000 in cash. The bank will loan you…
A: Time value of money is considered to determine the equated instalments that are due for each period.
Q: You calculate that you will need $75,000 in ten years to be able to pay for your daughter's college…
A: The question is based on the concept of Financial Accounting.
Q: Your friend is considering investing in a two-year MBA program. Tuition costs will be $60,000 for…
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Steve Fisher is saving for a new car. He needs to have $ 21,000 for the car in three years. How much…
A: Present worth is the value of the amount in current times that is expected to be received in some…
Q: You are going back to school and anticipate you will need 25,000 a year for living expenses for 6…
A: Using Excel PV function
You have a client who wants to buy a house. He needs $40,000 for a down payment and has $30,000 right now. If he can earn 5% compounded quarterly, on his savings, how long will it take to reach his goal?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You want to buy a house in 4 years and expect to need $25,000 for a down payment. If you have $15,000 to invest, how much interest do you have to earn (compounded annually) to reach your goal?. Suppose you want to buy a home after 3 years and you will need $15,000 for that. You open a savings account and deposit a lump sum amount of $2,000. You want to make a monthly payment at an interest rate of 4.5%. What should be the constant monthly payment you should make to reach the goal of $15,000 after 3 years? Explain in excelYou have a client who wants to buy a house in 2 years. He needs $40,000 for a down payment. If he can earn 5% compounded quarterly, on his savings, how much does he need to invest today to achieve his goal of $40,000 in 2 years?
- Suppose you want to buy a new house. You currently have $20,000, and you figure you need to have a 10% down payment plus an additional 5% in closing costs. If the type of house you want costs about $150,000 and you can earn 8.5% per year, how long will it be before you have enough money for the down payment and closing costs?You have already saved $20,000. Suppose you continue to make contributions of $750 at the beginning of each month for the next 15 years. You have a goal of having $200,000. 1) What monthly nominal rate of return must his investment earn for him to achieve his goal? 2) If the best rate in the market he can find is a 10% monthly nominal rate, what would be the new amount for the contributions he will have to make to still achieve his goal of having $150,000 in 10 years?Suppose you decide to wait 5 years to save up before buying the house. You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank. Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly payments. Answer the following questions about this loan. After making 240 monthly payments, how much of what you paid the bank was interest? $ . ROUND TO THE NEAREST CENT. THANKS APPRECIATE THE HELP!!!
- Suppose you want to buy a new house. You currently have $15 000 and you figure you need to have a 10% down payment plus an additional 5% of the loan amount in closing costs. If the type of house you want costs about $150 000 and you can earn 7,5% per year, how long will it be before you have enough money for the down payment and closing costs?You want to buy a $243,000 home. You plan to pay 10% as a down payment, and take out a loan with a rate of 8% for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be if you have a 30-year loan? $ c) What will your monthly payments be if you have a 15-year loan? $ d) What is the total amount paid to the bank over the 30-years? $ e) Whatis the total amount paid to the bank over the 15-years? $ f) Find the total interest paid for the 30-year loan. $ g) Find the total interest paid for the 15-year loan. $The Jones want to save $95,000.00 in 5 years for a down payment on a house. If they make monthly deposits in an account paying 5% compounded monthly, what is the size of the payments that are required to meet their goal?
- You want to save money from your businessoperation to replace a truck that has been used indelivery. The truck will be replaced after 12 yearsfrom now and the replacement cost would be about$60,000. If you earn 5% interest on your savings,how much must you deposit at the end of each yearto meet the needs?The Weidmans want to save $45,000 in 4 years for a down payment on a house. If they make monthly deposits in an account paying 12%, compounded monthly, what is the size of the payments that are required to meet their goal? (Round your answer to the nearest cent.) Need Help? Read ItYou want to purchase a new car and you are willing to pay $20,000. If you can invest at 10% per year and you currently have $15,000, how long will it be before you have enough money to pay cash for the car?