Question
Please answer all Upon graduation you receive $1500 in gifts, which you decide to invest for 10 years. If you earn 6.8% annually, compounded monthly,
Please answer all
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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?
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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?
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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?
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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?
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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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A company invests $1 million to clear land and plant pine trees. The trees will mature in 10 years and the company expects to sell them for $3.5 million. What will be its annual rate of return on this investment?
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You want to buy a parcel of land in an area of town in the direction of future development. The lot costs $55,000. The monthly payments on a loan to buy the lot would be $805.76. If the bank is charging you 9% interest per year, how years will it be before you own the land, free and clear?
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You have become bored with your job, you decide to start your own business. A new business takes money, so you start a 5-year plan. At an interest rate of 6 percent per year, how much must you invest each month to have $50,000 in your new business fund in 5 years?
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