Question

You recently got promoted at your job. You have since decided to buy your dream car...

  1. You recently got promoted at your job. You have since decided to buy your dream car and expect that it will cost you $94,000 seven years from today. After budgeting your expenses, you find you can start with $5000 today, and decide that you can save $5000 per year at the beginning of each year. Given a market interest rate of 13%, will you be able to purchase your car at the end of year 7? Would you be able to afford it one year later? Using financial calculator no formulas

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

SOLVED WITH BA II PLUS FINANCIAL CALCULATOR

AT THE END OF YEAR 7 AND 8, THE AMOUNT IS NOT ENOUGH TO BUY THE CAR

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 recently got promoted at your job. You have since decided to buy your dream car...
You recently got promoted at your job. You have since decided to buy your dream car and expect that it will cost you $94,000 seven years from today. After budgeting your expenses, you decide that you can save $9,000 per year at the beginning of each year. Given a market interest rate of 13%, will you be able to purchase your car at the end of year 7? Would you be able to afford it one year later? (Using financial...
You recently got promoted at your job. You have since decided to buy your dream car...
You recently got promoted at your job. You have since decided to buy your dream car and expect that it will cost you $94,000 six years from today. After budgeting your expenses, you find you can start with $2000 today and decide that you can save $12,000 per year at the beginning of each year. Given a market interest rate of 6%, will you be able to purchase your car at the end of year 6? Would you be able...
1. Calculate the number of years it will take for X to save $50,000 assuming she...
1. Calculate the number of years it will take for X to save $50,000 assuming she can invest $1250 annually as an annuity due, and she began at $3000. The market interest rate is 8%. 2. What is the yield to maturity on a bond that has a price of $1000 and pays $100 interest annually for 6 years at the end of which it repays the principal of $1000? Is the bond selling at a premium, at par, or...
1. Calculate the annual payment that must be made if you would like to save up...
1. Calculate the annual payment that must be made if you would like to save up $50,000 by t=8. Assume you are making these payments at the beginning of the year. Assume the interest rate to be 3.8% per annum. 2. Calculate the present value of an annuity due which pays 500 every year for the next five years, if the interest rate is 5%. 3. You recently got promoted at your job. You have since decided to buy your...
Please show steps to solution using a FINANCIAL CALCULATOR a. Calculate the present value of an...
Please show steps to solution using a FINANCIAL CALCULATOR a. Calculate the present value of an annuity due which pays 500 every year for the next five years, if the interest rate is 5%. b. You recently got promoted at your job. You have since decided to buy your dream car which costs $97,000. The car dealer tells you to pay 11,000 at the end of every year for the next 7 years after which you can take possession of...
. You plan to buy a Ferrari sports car in 5 years. Your dream model costs...
. You plan to buy a Ferrari sports car in 5 years. Your dream model costs $225,000 now and you expected the price to go up 10% per year. To get your dream car, you plan to make a monthly saving starting one month from now for 60 monthly savings. How much do you need to save each month in order to buy the car in 5 years, assuming that the interest rate is 6% (find the answer that is...
4-You decide to save for your dream vacation to Europe (London, Paris, and Rome). You want...
4-You decide to save for your dream vacation to Europe (London, Paris, and Rome). You want to be able to travel in 5 years. If you believe your trip will cost $8,000 and you can earn 6 percent annual interest on your savings, how much must you deposit today so you can afford your trip in 5 years? 5-What is the effective annual rate (EAR) of an 8 percent annual stated rate that is compunded semi-annually? 6-Burns Industries has total...
You want to start saving for a new car and have decided to put $90 per...
You want to start saving for a new car and have decided to put $90 per month at the beginning of each month into an account which earns 6% compounded monthly. You would like to be able to buy a car for $25,000. (a) How many deposits will you have to make to reach your $25,000 goal? (b) How many years will that be? Please indicate what you entered into your calculator to solve these problems.
You want to buy a car which will cost you $10,000. You do not have sufficient...
You want to buy a car which will cost you $10,000. You do not have sufficient funds to purchase the car. You do not expect the price of the car to change in the foreseeable future. You can either save money or borrow money to buy the car. Plan 1: You decide to open a bank account and start saving money. You will purchase the car when you have sufficient savings. The nominal interest rate for the bank account is...
. You are 35 years old today and are considering your retirement needs. You expect to...
. You are 35 years old today and are considering your retirement needs. You expect to retire at age 65 and your actuarial tables suggest that you will live to be 100. You want to move to the Bahamas when you retire. You estimate that it will cost you $ 300,000 to make the move (on your 65th birthday) and that your living expenses will be $30,000 a year (starting at the end of year 66 and continuing through the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT