Use the following data: 48 Purchase Costs Leasing Costs Down payment: $2,100 Security deposit: $700 Loan payment: $430 for 48 months Lease payment: $430 for 48 months Estimated value at end of loan: $4,200 EndofIease charges: $630 6'5 Opportunity cost interest rate: 4 percent per year Calculate the costs of buying versus leasing a motor vehicle. 0 - 6:07 Cost of leasing _ % ( Prev 48 of 52 555 Next > Using time value of money tables (Exhibit 'l-A, Exhibit 18, Exhibit 1C, Exhibit 'ID), calculate the following. a. The future value of $420 eight years from now at 10 percent. (Round your factor to 3 decimal places and final answer to 2 decimal places.) 6.5 Future value I I points b. The future value of $300 saved each year for 7 years at 5 percent. (Round your factor to 3 decimal places and final answer to 2 decimal places.) c. The amount a person would have to deposit today (present value) at a 8 percent interest rate to have $1,100 five years from now. (Round your factor to 3 decimal places and final answer to 2 decimal places.) % ( Prev 47 of 52 555 Next ) 49 6.5 points Ruby is 25 and has a good job at a biotechnology company. She currently has $8,400 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of7 percent, and she plans to leave it untouched until she retires at age 65. Ruby estimates that she will need $875,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $20,000 a year (she expects that Social Security will pay her an additional $15000 a year). Using Exhibit 'lA, Exhibit 18, Exhibit 'lC, Exhibit 1D, answer the following questions. a. How much will Ruby's IRA be worth when she needs to start withdrawing money from it when she retires? (Round discount factor to 3 decimal places and final answer to the nearest whole dollar.) Worth of IRA I I b. How much money will she have to accumulate in her company's 401(k) plan over the next 40 years in order to reach her retirement income goal? (Round discount factor to 3 decimal places and final answer to the nearest whole dollar.) Money to accumulate final answer to 2 decimal places.) 47 6.5 points c. The amount a person would have to deposit today (present value) at a 8 percent interest rate to have $1,100 five years from now. (Round your factor to 3 decimal places and final answer to 2 decimal places.) d. The amount a person would have to deposit today to be able to take out $500 a year for 10 years from an account earning 5 percent. (Round your factor to 3 decimal places and final answer to 2 decimal places.) _ % ( Prev 47 of 52 555 Next ) Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield 0f5.25 percent. Use the 2 5 formula presented in this chapterto calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Taxable equivalent yield _ \"/0 6.5 points % ( Prev 25 of 52 iii Next ) Done Louise McIntyre's monthly gross income is $3,300. Her employer withholds $800 in federal, state, and local income 13 taxes and $350 in Social Security taxes per month. Louise contributes $200 each month to her IRA. Her monthly credit payments for VISA and MasterCard are $115 and $110, respectively. Her monthly payment on an automobile loan is $325. 6.5 points Debt payments-to-income ratio \"/9 a. What is Louise's debt payments-to-income ratio? (Enter your answer as a percent rounded to 2 decimal places.) b. Is Louise living within her means? O Yes % HillYou and your spouse are in good health and have reasonably secure careers. Each of you makes about $45,000 3 8 annually. You own a home with a mortgage of $90,000, and you owe $20,000 on car loans, $10,000 in personal debts, and $9,000 on credit card loans. You have no other debts. You have no plans to increase the size of your family in the near future. Assume funeral expenses of $5,000. Estimate your total insurance needs using the DINK method. 6.5 2 02:27:10 fw I In 2019, selected automobiles had an average cost of $15,500. The average cost ofthose same automobiles is now 44 $17,205. What was the rate of increase for these automobiles between the two time periods? (Enter your answer as a percentage, rounded to the nearest whole number.) 6.5 points Rate of increase - % rlalw ( Prev 44 of 52 5:5 Next ) I Done