Question

a. You have $180,000 in an account earning 1.8% per year. You plan to make 12...

a. You have $180,000 in an account earning 1.8% per year. You plan to make 12 annual withdrawals out of this account starting 4 years from today. What are the equal annual withdrawals you can make that will deplete the account at the end?
a. $17,736.66
b. $19,142.53
c. $12,742.71
d. $15,351.41
e. $21,669.66
f. $15,878.98
g. $12,918.79

b. You'd like to buy a 40-foot used catamaran in 14 years for $450,000. You already have $82,000 saved in an account earning a monthly interest rate of 0.15%. Your plan is to make monthly deposits into this account in order to save enough to buy the catamaran. How much would you need to save monthly?
a. $672.32
b. $2,010.88
c. $2,649.24
d. $1,618.12
e. $1,804.69
f. $1,586.13
g. $2,382.53

Business   Finance   
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
suppose you want to buy a house. The house costs $180,000. You plan to make a...
suppose you want to buy a house. The house costs $180,000. You plan to make a cash down payment of 15% and finance the balance over 20 years at 7%. what will be the amount of you monthly payment?
You have $25,000 in an account earning an interest rate of 4.8%. What are the equal...
You have $25,000 in an account earning an interest rate of 4.8%. What are the equal monthly withdrawals you can make from this account, starting one month from today, before it is depleted in 15 years?
11. Suppose you want to buy a house. The house costs $180,000. You plan to make...
11. Suppose you want to buy a house. The house costs $180,000. You plan to make a cash down payment of 15 percent and finance the balance over 20 years at 7 percent. What will be the amount of your monthly payment?
You have $100,000 in a saving account earning 7.4 percent per year. You now want to...
You have $100,000 in a saving account earning 7.4 percent per year. You now want to make 6 equal yearly withdrawals depleting the saving account. How much are your withdrawals? Answer to the nearest cent, xxx.xx and enter without the dollar sign.
Today, you opened up a local bank account. Your plan is to make five $1,000 contributions...
Today, you opened up a local bank account. Your plan is to make five $1,000 contributions to this account. The first $1,000 contribution will occur today and then every 6 months you will contribute another $1,000 to the account. The bank account pays 6% nominal annual interest, and the interest is compounded monthly. After 2 years, you plan to leave the money in the account earning interest, but you will not make further contributions to the account. How much will...
You have $32,000 in an account earning an interest rate of 5%. What are the equal...
You have $32,000 in an account earning an interest rate of 5%. What are the equal beginning-of-month withdrawals you can make from this account before it is depleted in 19 years? Round to the nearest cent.
Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective...
Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective annual return. How many years will it take for your account to grow to $20,000, if you increase your deposit each year by 5%? (Hint: use excel goal seek). Enter answer in years, rounded to the nearest first decimal, as in "4.6" years
Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective...
Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective annual return. How many years will it take for your account to grow to $20,000, if you increase your deposit each year by 5%? (Hint: use excel goal seek). Enter answer in years, rounded to the nearest first decimal, as in "4.6" years
You just decided to begin saving for retirement. You will make deposits of $1,000 per month...
You just decided to begin saving for retirement. You will make deposits of $1,000 per month into a retirement account that earns 8.00% p.a. The first deposit is made today and the last deposit will be made when you retire exactly 30 years from today. The day you retire you will buy an RV for $240,000. You will begin to make withdrawals from the account the first month after you retire. If you plan to live an addition 25 years,...
If you make monthly payments of $491.00 into an ordinary annuity earning an annual interest rate...
If you make monthly payments of $491.00 into an ordinary annuity earning an annual interest rate of 3.2% compounded monthly, how much will you have in the account after 3 years? After 8 years?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT