Question
A) You have $39,117.59 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your
A) You have $39,117.59 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your account totals $260,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.
_____ years
B. You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 8% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places.
Monthly loan payment: $ ___
EAR: %____
C) Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent.
-An initial $200 compounded for 1 year at 4%.
$
-An initial $200 compounded for 2 years at 4%.
$
-The present value of $200 due in 1 year at a discount rate of 4%.
$
-The present value of $200 due in 2 years at a discount rate of 4%.
$
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