Answer the following questions using the Time Value of Money table If you deposited some of your savings today into an account that pays 13 percent interest How long will it take for you to tribble (multiplying it 3 times) your money at a compound interest rate of 13 Your parents are planning to retire after 10 years They currently have $100000, and they would like to have $236700 when they retire What annual rate of interest would they have to earn on their $100000 in order to reach their goal, assuming they save no more money A You are thinking about buying a car, and a local bank is willing to lend you $200,000 to buy it Under the terms of the loan, it will be fully amortized over 2 years (24 months), and the nominal rate of interest is 12 percent with interest paid monthly What would be the monthly payment on the loan B What would be the effective rate of interest on the loan Which amount is worth more at 14 percent, compounded annually $1,000 in hand today or $2,000 due in 6 years or 5000$ due in 10 years Explain your answer

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Posted on Aug 28, 2024

Answer the following questions using the Time Value of Money table:

If you deposited some of your savings today into an account that pays 13 percent interest. How long will it take for you to tribble (multiplying it 3 times) your money at a compound interest rate of 13%?

Your parents are planning to retire after 10 years. They currently have $100000, and they would like to have $236700 when they retire. What annual rate of interest would they have to earn on their $100000 in order to reach their goal, assuming they save no more money?

A- You are thinking about buying a car, and a local bank is willing to lend you $200,000 to buy it. Under the terms of the loan, it will be fully amortized over 2 years (24 months), and the nominal rate of interest is 12 percent with interest paid monthly. What would be the monthly payment on the loan?

B- What would be the effective rate of interest on the loan?

Which amount is worth more at 14 percent, compounded annually: $1,000 in hand today or $2,000 due in 6 years or 5000$ due in 10 years? Explain your answer?