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You found the perfect car but costs $30,000. How much is your monthly payments if your bank charges 2 5% interest for 5 years?
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?You want to buy a new car. You can afford payments of $200 per month and can borrow the money at an interest rate of 3.1% compounded monthly for 5 years. How much are you able to borrow? How much interest do you pay?Suppose you would like to save enough money to pay cash for your next car. The goal to save an extra $26,000 over the next 6 years. What amount of quarterly payments must you make into an account that earns 5.5% interest in order to reach your goal?
- You deposit $5,000 in a savings account that earns 6% simple interest per year.How many years will it take to double your balance? If, instead, you deposit the$5,000 in another savings account that cams 5% interest compounded yearly,how many years will it take to double your balance?You are buying your first car and need to borrow P1,600,000 over 5 years. If interest is 6%, what are your monthly payments?You want to have $35,000 in cash to buy a car 3 years from today. You expect to earn 3.6 percent, compounded annually, on your savings. How much do you need to deposit today if this is the only money you save for this purpose? Can the excel and calculator solution be provided?
- You want to buy a new car. You can afford payments of $250 per month and can borrow the money at an interest rate of 3.2% compounded monthly for 5 years.How much are you able to borrow?How much interest do you pay?You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How much do you need in your account in the beginning? how much total money will you pull out of the account? how much of that money is interest?. Suppose you want to buy a home after 3 years and you will need $15,000 for that. You open a savings account and deposit a lump sum amount of $2,000. You want to make a monthly payment at an interest rate of 4.5%. What should be the constant monthly payment you should make to reach the goal of $15,000 after 3 years? Explain in excel
- Do you want to buy a new car. You can afford payments of 200 times per month and can borrow the money yet an interest rate of 4.9% compounded monthly for five. How much are you able to borrow? How much interest will you pay?You want to buy a new car. You can afford payments of $200 per month and can borrow the money at an interest rate of 6.3% compounded monthly for 5 years.a) How much are you able to borrow? b) How much interest do you pay?you need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer.