Question

John wants to buy a new sports car, and he estimates that he'll need to make a $4,600.00$4,600.00 down payment towards his purchase. If he has 2727months to save up for the new car, how much should he deposit into his account if the account earns 2.278%2.278% compounded continuously so that he may reach his goal?

John needs to deposit

Answer #1

Marcy wants to buy a new car in one year. She currently has
$1,500 in the bank. Marcy plans to save $250 a month towards the
car. How much will Marcy have for a down payment assuming her bank
pays 6% compounded monthly?
a.
$4,584
b.
$3,084
c.
$4,217
d.
$4,676
Please add calculations.

Abdullah wants to buy a car in 6 years. His dream car costs AED
300,000 today and car prices are expected to increase at a rate of
15% per year for the next 6 years. Calculate the amount that he
needs to save on a monthly basis to buy his dream car in 5 years,
if he can earn a 12% interest compounded monthly on his savings
account.

Peter wants to save $500,000 to buy a sport car. He plans to
make a deposit of $8,000 each month to achieve this goal. ABC Bank
offers a deposit rate of 0.5% per month while DEF Bank offers a
deposit rate of 6% with quarterly compounding.
a) Which bank should Peter choose? Briefly explain your answer
with appropriate calculations [within 20 words].
b) After making the deposit into the chosen bank as mentioned in
part (a), how long does Peter...

Suppose James wants to buy a car in 3 years’ time and estimates
that he will need $25,000. The interest rate that he can earn from
a savings account is 6% per annum. If James can put in $7,000
today, $6,000 in one year’s time and $5,000 in 2 years’ time, how
much will he have to come up with at the end of the third year to
buy his car?
A.
He does not require more money as the...

Suppose James wants to buy a car in 3 years’ time and estimates
that he will need $25,000. The interest rate that he can earn from
a savings account is 6% per annum. If James can put in $7,000
today, $6,000 in one year’s time and $5,000 in 2 years’ time, how
much will he have to come up with at the end of the third year to
buy his car?
A.
He does not require more money as the...

Question 5 (1 point)
John plans to buy a vacation home in 11 years from now and wants
to have saved $89,889 for a down payment. How much money should he
place today in a saving account that earns 6.68 percent per year
(compounded daily) to accumulate money for his down payment?
Round the answer to two decimal places

John is considering buying a new car for $20,000 with $4,000
down payment and a 3-year car loan with APR 3.4%. The car's resale
value will be $12,000 at the end of 3 years. The dealership also
offers a lease option with $1000 security deposit which will be
refunded at the end of 3-year lease. The lease monthly payment will
be $300 per month and John could also invest his deposit at 1% in a
saving account. Should John choose...

Your friend wants to purchase a new TESLA car for $65,000. All
wheel drive, Long range battery, and dual motors. He has no
savings, so he needs to finance the entire purchase amount. With no
down payment, the interest rate on the loan is 10 % and the
maturity of the loan is 6 years. His monthly payments will be
$1673.33. He earns $1600.00 a month. He has a credit card limit of
$13,000 and an interest rate of 12%....

For retirement an investor wants to accumulate $250,000 in forty
years. How much should he invest in order to reach his goal if
money earns 9.5% compounded continuously? ($5592.69)

Question: Peter wants to save $500,000 to buy a sport car. He
plans to make a deposit of $8,000 each month to achieve this goal.
ABC Bank offers a deposit rate of 0.5% per month while DEF Bank
offers a deposit rate of 6% with quarterly compounding.
c) ABC bank has poor credit ratings and the management of the
bank has recently offered higher saving interest rates to attract
and retain new customers. Peter told you that he can also...

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