Question

Using a new technology, you estimate that you can save $1,300,000 per month, beginning in 3 months from now. How much should you spend so that you can use this technology at 1% per month (compounded monthly) if you want to get your investment back in 2.5 years? Use interest factors to solve this problem.

Answer #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.
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...

Amy and Vince want to save
$5,000
so that they can take a trip to Europe in four years. How much
must they save each month to have the money they need if they can
get 5%,
compounded monthly, on their savings?

You turn 35 today, and you plan to save $2,000 each month for
retirement, with the first deposit made at the end of this month.
You plan to retire 30 years from today, when you turn 65, but
you're not sure how long you can expect to live after retirement,
so you want the payments to go on forever. Under these assumptions,
how much can you spend each month after you retire? Your first
withdrawal will be made at the...

You want to buy a new car. You can afford payments of $300 per
month and can borrow the money at an annual interest rate of 5.5%
compounded monthly for 5 years. How much are you able to borrow? $
How much interest do you pay? $

You want to buy a new car. You can afford payments of $500 per
month and can borrow the money at an annual interest rate of 5.1%
compounded monthly for 5 years.
How much are you able to borrow?
$
How much interest do you pay?
$

1) Lauren plans to deposit $200 per month into an account at the
end of each month for the next 15 years. If her back pays interest
at the rate of 2.5% per year compounded monthly, how much will
Lauren have in her account at the end of 15 years?
2) Jim makes monthly payments of $800 into a retirement account
for ten years. If the account pays 8% compounded monthly, how much
will be in the account at the...

You plan on going on a 11 month vacation 9 months from now. You
can pay $4,118 per month during the vacation, or you can pay
$33,934 today. If you pay today, how much does it save (or cost)
you in present value term if your investments earn 4.85% APR
(compounded monthly)? If it costs you more to pay today, state your
answer with a negative sign (eg., -2000).

You decided to quit smoking today.
Now that you are going to save 100 €/month, you decided to save
those 100€ per month in a bank account that offers a 5% interest
rate compounded monthly, till the day you retire (that is to say,
in 20 years). Please answer the following questions:
If you do your deposits at the end of every
month (so your first deposit will be in one month from today) in a
bank account that offers...

You want to buy a new car. You can afford payments of $450 per
month and can borrow the money at an interest rate of 6.8%
compounded monthly for 3 years.

3.You want to save enough money to retire as a millionaire.
(show all work please)
a. If you could earn 10% with common stocks, how much would you
have to set aside per year to have $1,000,000 when you are 65?
Please use your own age. (Im 21 now, so a 44 year difference)
b. If you were going to make deposit monthly, how much would you
have to set aside per month to have $1,000,000 when you are 65?...

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