The owner of a ski resort estimates that a new 4-person ski lift will cost $4,000,000. The owner begins making payments on March 1 and every three months thereafter for 5 years into an account that earns 5% annual interest compounded quarterly. What payment amount must the owner make to have the cost of the ski lift in 5 years? (Round your answer to the nearest cent.)
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- A buyer is considering purchasing a 10-acre parcel in Peoria, Arizona for economic development. The parcel has a sales price of $720,000. The buyer agrees with the seller for purchasing the property with 15% down up front and paying off the balance in 12-months. If a bank is willing to provide 3% annual interest, compounded monthly, how much should the monthly deposit be into that account to pay off the desired balance to the seller?The Hunters are trying to save $8000 as the down payment on a new recreational vehicle. If they can deposit $200 at the end of each month in an account paying 4% compounded monthly, how long will it take them to accumulate the necessary amount? (Solution should be entered in years accurate to the hundredths decimal place)The owner of a ski resort estimates that a new 4-person ski lift will cost $4,000.000. The owner begins making payments on March 1 and every three r nonths thereafter for 5 years into an account inat earns 5% annual interest compounded quarterly. What payment amount must the owner make to have the cost of the ski lift in 5 years? (Round your answer to the nearest cent.)
- In an effort to save money for early retirement, an environmental engineer plans to deposit $1200 per month starting one month from now, into a selfdirected investment account that pays 8% per year compounded semiannually. How much will be in the account at the end of 25 years?A person is considering entering into an agreement with an investment company to deposit $1000 into a special account at the end of the first year, $1100 second year, and increasing by $100 every year for 15 years. At the end of 15 years, the person would be able to withdraw $36000. At which rate does the person earn interest if the interest is compounded annually? The answer is 5.54% per year. I am trying to understand why.An engineer purchases a house using only a loan borrowed from a local bank. The loan is offered at an interest rate 5% per year, compounding annually. According to the 25-year mortgage plan, the engineer will have to pay $10000 in the end of every year for 15 years, and after that, $12500 in the end of every year in the following 10 years. What is the price of the house? Choose the closest value to your answer. $160320.67 $157828.25 (c) $154612.70 $163942.33 E $150230.50
- The price of a new car is $16,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 9%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 60 months? Over a period of 72 months? 60 months 72 months (b) What will the interest charges be if she elects the 60-month plan? The 72-month plan? 60 months 72 monthsThe price of a new car is $36,000, Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing for the balance at the rate of 7%/year compounded monthly. (Round your answers to the nearest cent.) (a) What monthly payment will she be required to make if the car is financed over a period of 24 months? Over a period of 48 months? 24 months $ 48 months (b) What will the interest charges be if she elects the 24-month plan? The 48-month plan? 24-month plan 48-month planAn engineer who is about to retire has accumulated $50 000 in a savings account that pays 6% per year, compounded annually. Suppose that the engineer wishes to withdraw a fixed sum of money at the end of each year for 10 years. What is the maximum amount that can be withdrawn? Answer the question and explain how you arrived at your conclusion.
- K Franklin's new snowmobile cost $13,000. After his down payment of $1,000, he financed the remainder at 6% for 10 years. Use the table to find the monthly payment for the amortized loan. Find the total interest paid on the loan. Click the icon to view a table of monthly payments on a $1,000 loan. The monthly payments for this loan are (Round to the nearest cent as needed.) The total interest he paid on this loan is $. (Round to the nearest cent as needed.) Monthly Payment on a $1,000 loan Annual Interest Rate 4% 5% 6% 8% 10% 12% Number of Years for the Loan 10 20 $22.58 $10.12 $6.06 23.03 10.61 6.60 23.49 11.10 7.16 24.41 12.13 8.36 32.27 25.36 13.22 9.65 33.21 26.33 14.35 11.01 3 $29.53 29.97 30/42 31.34 30 $4.77 5.37 6.00 7.34 8.78 10.29 - X 5 Next 10 00 t UsPeter purchased a machine for $400,000. He paid 16% of the value as a down payment and received a loan for the balance at 7.05% compounded annually. He had to make payments of $4,443.55 at the end of every month to settle the loan. a. How many payments were made? A full solution for the number of payments should be shown. Submit your solution. o payments Round up to the next payment periodYou decide to purchase your own property. The estimated purchase price is $1,600,000. You obtain 90% financing from the bank, 7% fixed rate for 25 years. How much do they have to pay the bank every year? How much do you still owe the bank in 14 years?