Sali would like to send her parents on a cruise for their 25th wedding anniversary. She has priced the cruise at $15,000, and she has 5 years to accumulate this money. How much must Sali deposit annually in an account paying 10 percent interest in order to have enough money to send her parents on the cruise? Select one a. $3,000 b. $2,234 C. $1,862 d. 52,457

Sali would like to send her parents on a cruise for their 25th wedding anniversary. She has priced the cruise at $15,000, and she has 5 years to accumulate this money. How much must Sali deposit annually in an account paying 10 percent interest in order to have enough money to send her parents on the cruise? Select one a. $3,000 b. $2,234 C. $1,862 d. 52,457

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 13E

See similar textbooks

Similar questions

Arthur wishes to have 80,000 in her bank account. How much suould she deposit in a bank account that pays 8% compounded quarterly so that after 6 years and 5 months, she can have her desired money? Choices are: 31, 889.7541648, 110.24584 and 50,000
Michelle wants to set aside funds to take an around the world cruise in four years. Assuming that Michelle has $26000 to invest today in an account expected to earn 5% per annum, how much will she have to spend on her vacation? O $21388. O $31603. O $112063. O $33183.
Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in interest from it over the next 12 years. How much money should Lily invest in this account to meet her goal? (Use I = Prt) a. $2,000.00 b. $1.670,40 $9.578.54 d. $6,030.27
Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If the bank CD she wants to invest in will pay 7.5 percent annually, how much will she have to invest today Select one: a. 15680.04 OMR O b. 16107.50 OMR O c. 17107.50 OMR d. None of these O e. 16199.03 OMR
Gina has planned to start her college education four years from now. To pay for her college education, she has decided to save $1,000 a quarter for the next four years in a bank account paying 12 percent interest. How much will she have at the end of the fourth year? O a. $16,000 O b. $1,574 O c. $19,116 O d. $20,157
Sue's goal is to have $9000 in her savings account seven years from now. How much must she set aside at the end of each year at 5% compounded annually to meet this goal? Select one: a. $1105.38 b. $1285.71 c. $1555.38 d. $1089.66
Trisha Long wants to buy a boat in five years. She estimates the boat will cost $15,000 at that time. What must Trisha deposit today in an account earning 5% annually to have enough to buy the boat in five years? 30 Multiple Choice $11,752.50 $12,328.50 $1,527.50 None of these $1,077.50
5. Of the following exercises you can do only one you choose have the same value of A. Today is the fifteenth birthday party of the daughter of a family. and for this, her mother de ella deposited the sum of ₡ 250,000.00 colones seven and a half years ago in a bank that recognized 3% monthly interest for the first three years and for the rest of the time 42% compounded monthly. How much money will she have and if the party costs ₡ 4,500,000.00 how much she should have deposited in that period at the same rates for the same periods. B. A person wants to make two individual investments, one today and one in six months at a rate of 18% compounded monthly. What is the amount of the first investment if at the end of a year you want to reach the sum of 10,000,000.00 and the second investment is 5,000,000.00. What would be the calculation if the compounding is bimonthly.
May I ask for an explanation and solution to the question for a better understanding. Thank you! 10. You inherit P150,000 from your aunt. You decide to invest the money in a three-year certificate of Deposit (CD) that pays 4% interest, compounding quarterly, to use as a down payment on a house. How much money will you have when the CD matures? a. P506,188.80 b. P169,023.75 c. P168,729.60 d. P674,918.40
Maryannis planning a wedding anniversary gift of a trip to Hawaiifor her husband at the end of 3years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume her investment earns a4percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways? a.Annually b.Quarterly c.Monthly
Sara wants to have $530,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 9%, to ensure that she has $530,000 in 18 years time? OA. $112,357 OB. $202,243 OC. $119,492 O D. $157,300
Grandma Patt has decided to open a savings account for her newborn granddaughter. The savings account pays 3% interest. If Grandma Patt wants there to be $10,000 in the account in 18 years, how much should she deposit today? Assume no other deposits or withdrawals. a) $5,873.95 b) $17,024.33 c) $8,362.17 d) $10,609.23