Question

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.

Answer #1

You are saving money to buy a Car.
You will need $20,000 as the price of the car today. If you can
make a down payment now of $8000 , and want to pay the rest by
installments,
how much each deposit per month should be if you want to pay
the rest of the amount in 24 months if the interest rate on the
deposit is 6% per year?
If you can deposit $664 per month how long will...

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.
How much will you have in the account at the end of 24
months?
How much more would you have at the end of 24 months if
you deposited $200 per month?
What would you need to deposit to have $8,000 available
for a down...

3. How much do you need to deposit in your saving account in
today’s money, which earns 10% compound interest, to be able to
collect $8,574.35 in 8 years? Solve this problem using the
mathematical method showing all steps. Then solve the problem using
Excel present value (PV) calculations (show the changes in saving
over all 8 years)

If a savings account pays 7% p.a. interest rate, how much money
do you need to deposit to accumulate $79545 in 9 years? Note that
the bank will compound interest monthly.

You want to buy a house within 3 years, and you currently saving
for down payment, you plan to save $300 at the end of each month,
and you anticipate that your savings will increase by 10% annually
thereafter. Your expected annual return during the saving period is
6%. How much will you have for a down payment at the end of year
3?

You found your dream home! The down
payment is $27,000. However, you still need 40% of the down payment
plus required improvements will cost another 18% (First: what total
% of the down payment do you need? _____). You borrow the money
from your Savings & Loan, but you must pay it back within 10
years at an interest rate of 14%.
1) Calculate the amount you need to
borrow your Savings & Loan.
Using this amount as your principal...

. If prices are expected to increase by 3% per year, how much do
you need in your retirement account if you want $3,000 per month in
today’s dollars, you expect to retire in 35 years, the rate of
return on your retirement account is 6% and you want to receive
money from your account for 25 years after you retire? Also how
much do you need to save each month for the next 35 years so that
you can...

If prices are expected to increase by 3% per year, how much do
you need in your retirement account if you want $3,000 per month in
today’s dollars, you expect to retire in 35 years, the rate of
return on your retirement account is 6% and you want to receive
money from your account for 25 years after you retire? Also how
much do you need to save each month for the next 35 years so that
you can have...

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.

Jennifer Creek is saving up for a new car. She wants to finance
no more than $10,000 of the $26,000 estimated price in two years.
She deposits $4000 into a savings account now and will make monthly
deposits for the next two years. If the savings account pays a
nominal interest rate of 5% per year with monthly compounding, how
much must she deposit each month?

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