a) Andrea wants to know how much money she will have in 7 years if she deposits her S$800 tax refund now and then deposits an additional $70 per month in her account that pays an APR of 2.4% compounded monthly. Use Excel to determine how much money will Andrea have in the account in 7 years? b) If Andrea changes her mind and decides that instead of setting aside $70 per month she wants to know how much she will have to deposit each month to save up a total of $4500, we can use goal seek to find the value for PMT which yields $4500 at the end of 7 years. How much money will Andrea need to deposit per month?

a) Andrea wants to know how much money she will have in 7 years if she deposits her S$800 tax refund now and then deposits an additional $70 per month in her account that pays an APR of 2.4% compounded monthly. Use Excel to determine how much money will Andrea have in the account in 7 years? b) If Andrea changes her mind and decides that instead of setting aside $70 per month she wants to know how much she will have to deposit each month to save up a total of $4500, we can use goal seek to find the value for PMT which yields $4500 at the end of 7 years. How much money will Andrea need to deposit per month?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Katy has decided she wants to put money aside for a $8000 downpayment on a house. She figures she will be ready to buy in 10 years. How much does she need to deposit today into an account that earns 6.75% interest compounded monthly for her to reach her goal?
Please help me answer the following time value of money question. Tanya wants to be able to withdraw $7000 at the end of 7 years and $9000 at the end of 8 years. If she can earn 5.5%, how much does she need to deposit in order to do that? (*there are 2 different future values.)
Gabriela wants to withdraw $5,000 from her account at the end of 5 years, and $7,000 at the end of 6 years, leaving a zero balance after the second withdrawal. If she earns 8% a year on her balance, how much should she deposit today to reach her goal on those dates?
a. Andrea wants to know how much money she will have in 8 years if she deposits her $700 tax refund now and then deposits an additional $70 per month in her account that pays an APR of 1.6% compounded monthly. Use Excel to determine how much money will Andrea have in the account in 8 years? $ b. If Andrea changes her mind and decides that instead of setting aside $70 per month she wants to know how much she will have to deposit each month to save up a total of $5500, we can use goal seek to find the value for PMT which yields $5500 at the end of 8 years. How much money will Andrea need to deposit per month? $
Sara wants to make a deposit now into an account that earns 3% annually so that she will be able to withdraw an amount of $125 at the end of each of the next 5 years. How much should she deposit today?
Mary would like to save $10,000 at the end of 5 years for a future down payment on a car. a. How much should she deposit at the end of each month in a savings account that pays 1.2%/a, compounded monthly, to meet her goal? b. If you currently have a part-time job, consider your hourly wage. If you do not have a job, use the minimum hourly wage in your jurisdiction. How many hours each month would you have to work, just to make those payments? Write a brief reflection on the advantages and disadvantages to long-term saving for a purchase, compared to borrowing a large sum of money and paying it off over time. Note that interest rates for savings accounts are always lower than interest rates for borrowing.
a) Dylan will start start college in 9 years. Dylans parents want to save a total amount of $32 000 in 9 years before he begins college, to help pay for his college tuition. They plan to save the money by making deposits every month into a savings account that earns 6.3% per year compounded monthly. How much are their regular monthly deposits? b) How much interest will Dylans parents earn on the account?
Kourtney currently works at Bruin Productions and decide to finally plan for the future, she wants to retire in 10 years, but has not saved for retirement. She wants to have $250,000 when she retires in 10 years. How much should she deposit each month into an account that pays 6.1% annual interest, compunded monthly?
Ali has decided to take a trip back home to California in 1 ½ years, but she needs to save up some money first. She deposits $55 every week into an account that has an APR of 0.14%. How much money will she be able to save up for her trip?
Ms. Beeblebrox would like to save for her son's education by making monthly deposits of $60 at the end of every month starting when her son is born until he reaches 11 years old. She won't make any more contributions starting on her son's 11th. When her son turns 18 years old, she will use the funds to provide beginning of months payments for the next 5 years. Using an interest rate of J12=8%. Calculate the value of the payments
After retiring, Amina wants to be able to withdraw $30,500.00 every year from her account for 25 years. Her account earns 9% interest compounded annually.How much does Amina need in her account when she retires? Amina needs$________ in her account when she retires. How much total money will Amina pull out of her account? In total, Amina will pull out $________ from her account. How much of that money is interest? The amount of money that is interest is$________ .
6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?

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