Suppose you buy a home and finance $295,000 at $2,233.17 per month for 30 years. What is the amount of interest paid? (Round your answer to the nearest cent.)
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A: Given:
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A: The monthly deposit is the amount that is paid every month until the maturity of the period.
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A: Present Value (Investment in bank)= $1,000 Annual Interest rate (r)= 14% per year compounded monthly…
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A: Given: Investment = 10,000 Interest rate = 14% Years = 10
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A: given, rate = 3% no of years= 45 FV= 300,000
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A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest…
A: Future Value = $800,000 Time period = 25 years Interest rate = 7%
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much…
A: a) Hence, amount of $149,035.94 have in account in 30 years.
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A: Future value of ordinary annuity(cash flow due at the end of year) can be calculated by using this…
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A: Here, Loan amount = $40,000 Quarterly payment of the loan = $800 Interest rate = 6.5% compounded…
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A: In this question future value is to be find out. Future value is the value of an asset which grows…
Q: You deposit $200 each month into an account earning 3% interest compounded monthly. a) How much…
A: Monthly Deposit = 200 Monthly Compounding Time Period (n) = 240 months Interest Rate (r) = 3%/12 =…
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A: An annuity provides regular payment for a certain period of time.
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A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…
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A: Future value of each month payment (FV) = $500,000 Number of years to retirement = 20 Number of…
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Q: How much would you need to deposit in the account each month?
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A: Future value (FV) = $ 291,000 Interest rate (r) = 8.9% Period (t) = 13 Years Constant (e) = 2.7183…
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A: Working note:
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A: The present value is the current value of the amount that has to be paid or received in the future.
Q: Suppose you buy a home and finance $285,000 at $2,223.17 per month for 30 years. What is the amount…
A: Loan amount = $ 285,000 Monthly payment = $ 2223.17 Period = 30 Years Number of monthly payments =…
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A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
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A: Computation:
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A: A study that proves that the future worth of the money is lower than its current value due to…
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A: a) Money in account in 30 years: Solved using Financial Calculator PMT = -300 N = 12 * 30 = 360 I/Y…
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 8% interest. a) How…
A: The amount to be invested each month will be compounded and will form a corpus und at the end of the…
Q: Suppose you invest $140 a month for 3 years into an account earning 8% compounded monthly. After 3…
A: The future value is the future worth of the amount that will be paid or received at future.
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A: Formula used as follows: S=R1+in-1iS=Future valuei=Interest rate per periodn=Number of…
Q: Suppose you buy a home and finance $255,000 at $2,223.17 per month for 30 years. What is the amount…
A: Given: Finance amount = $255,000 Payment per month = $2,223.17 Years = 30
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Q: Suppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest.a) How…
A: The question given is related to the annuity payouts, which refers to a series of payments paid over…
Q: Suppose you buy a home and finance $265,000 at $2,223.17 per month for 30 years. What is the amount…
A: Cost of home= $265,000 Financing pattern= $2,223.17 per month for 30 years Amount of Interest=?
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A: Present value = 50000 Interest rate = 2% Days = 30 Assume 365 days in Year
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A: Given information: Purchase price = $33,000 Loan = $33,000 -20%×$33,000 = $26,400 Term = 5 years…
Suppose you buy a home and finance $295,000 at $2,233.17 per month for 30 years. What is the amount of interest paid? (Round your answer to the nearest cent.)
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYou put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Suppose you want to have $300,000 for retirement in 30 years. Your account earns 5% interest. a ) How much would you need to deposit in the account each month? $ b) How much interest will you earn?Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest compounded annually. Round your answers to the nearest cent.a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $
- Suppose an investment will pay $7,000 in 44 years from now. If you can earn 6.15% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choicesSuppose you want to have $600,000 for retirement in 20 years. Your account earns 5% interest.a) How much would you need to deposit in the account each month? b) How much interest will you earn?Suppose you want to buy a vacant lot for your future home for $29,673. If your bank is willing to loan you the money at a 6% APR over the next 14 years how much would be your monthly payment? (Round up your answer to two decimal point)
- Suppose an investment will pay $25,000 in 39 years from now. If you can earn 11.05% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.Suppose you want to have $700,000 for retirement in 30 years. Your account earns 10% interest. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $ esSuppose you want to have $400,000 for retirement in 35 years. Your account earns 4% interest. Round your answers to the nearest cent.a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $