Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls without handwirting 1- Starting next year, you will need $23500 annually for 4 years to complete your education. (One year from today you will

pls without handwirting image text in transcribed
image text in transcribed
image text in transcribed
1- Starting next year, you will need $23500 annually for 4 years to complete your education. (One year from today you will withdraw the first $23500.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $23500 payments. a) How large must the deposit be? (1.5 point) b) How much will be in the account immediately after you make the first withdrawal? (2 point) 2- Simon recently received a credit card with an 51.75% nominal interest rate. With the card, he purchased an Apple iPhone 6 for $507.71. The minimum payment on the card is only $30 per month. a) If Layla makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Round to the nearest month. (15 point) 1 Page b) I Layla makes monthly payments of $35. how many months will it be before he pays off the debt? Round to the nearest month (1.5 point) c) How much more in total payments will Layla make under the S10-a-month plan than under the $35-4- month plan? Make sure you use three decimal places for N. (3 point) 3. You want to buy a new sports car 3 years from now, and you plan to save $4050 per year, beginning one year from today. You will deposit your savings in an account that pays 5.25 interest. How much will you have just after you make the 3rd deposit, 3 years from now? (15 point) 21 Page 4- Your client is 161 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $21500 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 10% in the future. - Your client is 161 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $21500 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 10% in the future. a) If she follows your advice, how much money will she have at 2007 (1.5 point) b) How much will she have at 205(1-5 point) c) She expects to live for 20 years if she retires at 200 and for 15 years if she retires at 205. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? (3 point 3 Page

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Financial Management

Authors: Alan C. Shapiro

7th Edition

0471395307, 9780471395300

More Books

Students also viewed these Finance questions