Question

You estimate you can save $150 per month for a down payment on a car. You...

  1. You estimate you can save $150 per month for a down payment on a car. You hope to purchase the car in 24 months. You invest this in an account that pays 6% compounded monthly.

    1. How much will you have in the account at the end of 24 months?

    2. How much more would you have at the end of 24 months if you deposited $200 per month?

    3. What would you need to deposit to have $8,000 available for a down payment?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are saving for a down payment on a car. How much money do you need...
You are saving for a down payment on a car. How much money do you need to deposit into a savings account per month to have $8,000 in your account in two years? The interest rate on your account is 6%/year.
You plan to save money for a down payment of $44,000 to purchase an apartment. You...
You plan to save money for a down payment of $44,000 to purchase an apartment. You can only afford to save $6,000 at the end of every 6 months into an account that earns interest at 5.50% compounded monthly. How long will it take you to save the planned amount? years months
Suppose you need to $5,000 as the down payment on a car. If you have an...
Suppose you need to $5,000 as the down payment on a car. If you have an account earning 3.75% interest compounded monthly and you want to make the purchase in one year, how much would you need to invest today? Solve the equation A = 2P(1 + rt) for r.
You plan to save money for a down payment of $43,000 to purchase an apartment. You...
You plan to save money for a down payment of $43,000 to purchase an apartment. You can only afford to save $6,000 at the end of every 6 months into an account that earns interest at 6.50% compounded monthly. How long will it take you to save the planned amount? Express the answers in years and months, rounded to the next payment period
29.You would like to save up for a down payment on a house. You need to...
29.You would like to save up for a down payment on a house. You need to save up $30,000 and can afford to put $500 in the bank at the end of every month. How long will it take you to reach your goal if quoted interest rates are 7% compounded monthly? Select one: a. About 68 months b. About 52 months c. About 77 months d. About 71 months e. None of the above.
If you invest $96 per month (starting next month) every month for 36 years, and you...
If you invest $96 per month (starting next month) every month for 36 years, and you can earn 11% per year (compounded monthly), how much will you have at the end of 36 years? Round to the nearest cent. If the most you can afford each month on a car payment is $393, the applicable discount rate is 4.1% per year, and an auto-loan is for 5 years paid monthly, what's the most expensive car you should purchase today assuming...
You would like to save annually for buying a car 6 years from today. Suppose the...
You would like to save annually for buying a car 6 years from today. Suppose the first deposit is made today and the last deposit will be made 5 years from now. Assume the car will cost you $30,000 and your deposits earn you interest at 6% p.a, compounded annually. (a) What is your annual deposit amount? (b) Instead of making annual deposits, you would like to make your deposit monthly and the bank is happy to pay your interest...
You have saved $2,000 for a down payment on a new car. The largest monthly payment...
You have saved $2,000 for a down payment on a new car. The largest monthly payment you can afford is $475. The loan will have a 13% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 60 months? For 72 months?
You want to receive $5,000 per month in retirement. If you can earn .75% per month...
You want to receive $5,000 per month in retirement. If you can earn .75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement? You want to receive $5,000 per month for the next 5 years. What monthly rate would you need to earn if you only have $200,000 to deposit? You are saving for a new car and plan to put $3,000 per year in...
6. You charged $2,551 on a credit card. If you pay the minimum payment per month...
6. You charged $2,551 on a credit card. If you pay the minimum payment per month of $44, you will pay it off after making 99 payments. If you pay $10 more per month, you will pay it off 32 months sooner.  How much total interest will you save? 7. You charged $3,205 on a credit card. If you pay the minimum payment per month of $46, you will pay it off after making 297 payments. How much total interest will...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT