Question

You decided to save money for a travel to Barcelona in two years. You decided to open a savings account and make equal monthly deposits for the next two years. You think that you need to save $5,000. You checked a few banks to find out the best savings account and identified one, the APR of which is 3.6%. You will receive interests every month and you are going to keep those received interests in your savings account. How much do you have to deposit each month into this account to have exactly $5,000 in two years? (i.e., you are going to make 24 monthly deposits starting from the end of this month. You have to have $5,000 in your account right after you make your twenty-fourth deposit)

Answer #1

You want to come up with a plan to save for retirement. You will
contribute to your retirement account monthly for 40 years. One
month after your last contribution you will begin monthly
withdrawals of $7,500 from that retirement account. You earn 6.6%
APR while you’re contributing to your retirement savings and 3.6%
APR while you are withdrawing. You want to have enough money to
finance 35 years in retirement. (Assume compounding frequencies
match the payment frequencies.)
What variable would...

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 have decided to begin saving for a vacation to Hawaii. You
believe that the full cost of the vacation, with airfare,
accommodations, and dining will be $5,000. You are going to begin
saving $150 per month, beginning one month from today. If your
account pays interest at a rate of 7.2% APR compounded monthly, how
many months will it take to save $5,000? Round your answer UP to
the nearest whole month.

You would like to save annually for buying a car 6 years from
today. Suppose the first deposit is made today and the last deposit
will be made 5 years from now. Assume the car will cost you $30,000
and your deposits earn you interest at 6% p.a, compounded
annually.
(a) What is your annual deposit amount?
(b) Instead of making annual deposits, you would like to make
your deposit monthly and the bank is happy to pay your interest...

Math of Finance
You decided to quit smoking today.
*basic information* Now that you are
going to save 200 €/month, you decided to save those 200€ per month
in a bank account that offers a 3% interest rate compounded
monthly, till the day you retire (that is to say, in 20 years)
If you decide to do your deposits at the end of every month
(your first deposit will be in one month from today) in a bank
account that...

You have decided to place $972 in equal deposits every month at
the beginning of the month into a savings account earning 14.83
percent per year, compounded monthly for the next 12 years. The
first deposit is made today. How much money will be in the account
at the end of that time period?
Round the answer to two decimal places.

You have decided to place $361 in equal deposits every month at
the beginning of the month into a savings account earning 4.63
percent per year, compounded monthly for the next 5 years. The
first deposit is made today. How much money will be in the account
at the end of that time period? Round the answer to two decimal
places.

You have decided to place $644 in equal deposits every month at
the beginning of the month into a savings account earning 5.88
percent per year, compounded monthly for the next 6 years. The
first deposit is made today. How much money will be in the account
at the end of that time period?
Round the answer to two decimal places.

1.You are going to deposit $2,800 in an account that pays .54
percent interest compounded quarterly. How much will you have in 8
years?
2.You have $5,000 and will invest the money at an interest rate
of .21 percent per month until the account is worth $9,800. How
many years do you have to wait until you reach your target account
value?
3.You have just started a new job and plan to save $4,500 per
year for 40 years until...

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. (Note:
you make 361 total monthly deposits into your retirement account.)
You will begin to make withdrawals from the account the first month
after you retire. If you plan to live an addition 25 years...

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