Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You would like to buy a house in in 16 years and estimate that you will need a deposit of $73,014. You plan to make

You would like to buy a house in in 16 years and estimate that you will need a deposit of $73,014. You plan to make bi-weekly deposits into an account that you hope will earn 7.05%. How much do you have to deposit every two weeks?
You have accumulated $1,085.55 in debt by buying things on Amazon during quarantine.  The minimum monthly payment is $24.87, If you make only the minimum payment, it will take you 65 months to pay it off. If you pay $10 more per month, you will pay it off in 36 months.  How much total interest will you save?
Your best friend opened an investment account with a deposit of $185 today. They will continue to deposits every two weeks into an account that they hope will earn an interest rate of 8.48% per year. How much will they have in 5 years?
Your grandmother invested in an annuity to help fund her retirement.  She will receive monthly payments of  $4,532 over 18 years and she will receive her first payment today. If the appropriate discount rate is 4.61%, how much is the the annuity worth today?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve these problems lets tackle them one by one 1 Biweekly deposits for a house deposit We can use the formula for the future value of an annuity to find the biweekly deposit required FV Pmt frac1 ... 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

Financial Management Principles and Applications

Authors: Sheridan Titman, Arthur Keown, John Martin

12th edition

133423824, 978-0133423822

More Books

Students also viewed these Finance questions