Question

you
plan to buy a house in 13yearw you want to save money for a down
payment on the new hiuse .you are able to place $394 every month
into a savings account at an annual rate of 13.46 percent
compounded monthly how muxh money will be in the account after you
made the last payment

Answer #1

**Computation of
Downpayment amount:**

Given

Monthly Saving amount = $ 394

No.of Years = 13

Interest rate = 13.46% Compounded Monthly

Interest rate per month = 13.46% /12 = 1.121667%

No.of Payments in 13 Years = 13*12= 156

We know that

Future Value of the Ordinary Annuity = C [{ ( 1+i) ^n - 1} /i]

Here C = Cash Flow per period

I = Interest rate per period

n = No.of Payments

Future Value of the Ordinary Annuity = C [{ ( 1+i) ^n - 1} /i]

= $ 394[ { ( 1+0.011217)^156 -1} /0.011217]

= $ 394[ { ( 1.011217)^156 -1} /0.011217]

= $ 394[ { 5.697974-1} /0.011217]

= $ 394[ 4.697974/0.011217]

= $ 394* 418.8262

= $ 165017.52

**Hence the total money in the account after the last
payment is made is $ 165017.52**

**If you are having any doubt,please post a
comment.**

**Thank you.please rate it.**

you
plan to buy a new house in 13 years you want to save money for a
downnpayment on the new house you are able to
place $394 every month at the end of the month into a savings
account at an annual tate of 13.46percent compounded monthly how
much money will be in the account after you made the last
payment

You plan to buy a house in 11 years. You want to save money for
a down payment on the new house. You are able to place $286 every
month at the end of the month into a savings account at an annual
rate of 6.54 percent, compounded monthly. How much money will be in
the account after you made the last payment?

You plan to buy a house in 6 years. You want to save money for a
down payment on the new house. You are able to place $401 every
month at the end of the month into a savings account at an annual
rate of 14.64 percent, compounded monthly. How much money will be
in the amount after you made the last payment?

You plan to buy a house in 7 years. You want to save money for a
down payment on the new house. You are able to place $353 every
month at the end of the month into a savings account at an annual
rate of 10.73 percent, compounded monthly. How much will be in the
account after you made the last payment? Round the answer to the
two decimal places.

3c3.
You need to accumulate $75,706 for your son's education. You
have decided to place equal year-end deposits in a savings account
for the next 5 years. The savings account pays 14.25 percent per
year, compounded annually. How much will each annual payment
be?
Round the answer to two decimal places.
3b3.
You plan to buy a house in 13 years. You want to save money for
a down payment on the new house. You are able to place $323...

You plan to buy the house of your dreams in 17 years. You have
estimated that the price of the house will be $88,158 at taht time.
You are able to make equal deposits every month into a savings
account at an annual rate of 3.33 percent, compounded monthly. How
much money should you place in this savings account every month in
order to accumulate the required amount to buy the house of your
dreams? Round the answer to two...

What is the present value of the following annuity? $1,070 every
half year at the beginning of the period for the next 14 years,
discounted back to the present at 3.13 percent per year, compounded
semiannually.
You plan to buy a house in 14 years. You want to save money for
a down payment on the new house. You are able to place $348 every
month at the end of the month into a savings account at an annual
rate...

You plan to save money for a down payment of $44,000 to purchase
an apartment. You can only afford to save $6,000 at the end of
every 6 months into an account that earns interest at 5.50%
compounded monthly. How long will it take you to save the planned
amount?
years
months

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 plan to save money for a down payment of $43,000 to purchase
an apartment. You can only afford to save $6,000 at the end of
every 6 months into an account that earns interest at 6.50%
compounded monthly. How long will it take you to save the planned
amount?
Express the answers in years and months, rounded to the next
payment period

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 9 minutes ago

asked 45 minutes ago

asked 48 minutes ago

asked 50 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago