Question
I need help with the formulas on excel and how to convert everything properly Upon graduation you receive $1500 in gifts, which you decide to
I need help with the formulas on excel and how to convert everything properly
Upon graduation you receive $1500 in gifts, which you decide to invest for 10 years. If you earn 6.8% annually, compounded monthly, how much will you have in the account at the end of the 10th year?
The CEO of your company wants to buy another Bugatti Veyron, but he will need to get a loan to buy it. The bank is willing to give him a 5-year loan at 6% interest, but they are requiring him to make a 10% down payment. The car costs $2,200,000. How much will the monthly payments be?
You want to buy an Audi Q3 on your 26th birthday. You have priced these cars and found that they currently sell for $40,400. You believe that the price of this model will increase by 3% per year until you are ready to buy. You can presently invest to earn 6.5% annually. If you have just turned 20 years old, how much must you invest per year to be able to purchase the car in cash in 6 years?
You have won a game show prize of a trip to Tahiti in one year valued at $15,000. If instead, you are able to take the present value of the trip in cash, how much cash would you want if the rate you can earn is 7.2% annually, compounded annually?
You have just graduated from MSU, and have landed a job with a starting salary of $75,000 per year. You have decided to buy a house, and you have $10,000 saved up from your part-time job at Qdoba. The Eighth National Bank of DeWitt is offering to give you a 30-year mortgage at 8.7% annual interest with monthly payments, but they will not give you a loan that will involve monthly payments of more than 25% of your income. Assuming you will borrow as much as you can from this bank, and assuming closing costs of 4% of the amount borrowed, what is the highest price you will be able to pay for the house?
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