Question

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 every month at the end of the month into a savings account at an annual rate of 11.18 percent, compounded monthly. How much money will be in the account after you made the last payment?

*Round the answer to two decimal places.*

Your Answer:

Your Answer:

Answer #1

3c3.Information provided:

Future value= $75,706

Time= 5 years

Monthly interest rate= 14.25%

The annual payment is calculated by entering the below in a financial calculator:

FV= 75,706

N= 30

I/Y= 14.25

Press the CPT key and PMT to compute the annual payment.

The value obtained is 11,396.45.

Therefore, the annual payment is
**$11,396.45.**

3b3.Information provided:

Monthly deposit= $323

Time= 13 years*12= 156 months

Monthly interest rate= 11.18%/12= 0.9317%

The question is solved by calculating the future value.

Enter the below in a financial calculator to compute the future value :

PMT= -323

N= 156

I/Y= 0.9317

Press the CPT key and FV to compute the future value.

The value obtained is 112,637.93.

Therefore,
**$112,637.93** will be in the account after I made
the last payment.

You need to accumulate $119,221 for your son's education. You
have decided to place equal year-end deposits in a savings account
for the next 7 years. The savings account pays 4.08 percent per
year, compounded annually. How much will each annual payment
be?
Round the answer to two decimal places.

You need to accumulate $114,480 for your son's education. You
have decided to place equal year-end deposits in a savings account
for the next 14 years. The savings account pays 6.88 percent per
year, compounded annually. How much will each annual payment
be?
Please show your work and do not use calculators.

You need to accumulate $114480 for your son's education. You
have decided to place equal year-end deposits in a savings account
for the next 14 years. The savingsaccount pays 6.88 percent per
year

3b4
You are going to save money for your son’s education. You have
decided to place $2,724 every half year at the end of the period
into a saving account earning 11.02 percent per year, compounded
semi-annually for the next 11 years. How much money will be in the
account at the end of that time period?
Round the answer to two decimal places.

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...

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 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.

You are going to save money for your son’s education. You have
decided to place $786 every half year at the end of the period into
a saving account earning 5.15 percent per year, compounded
semi-annually for the next 13 years. How much money will be in the
account at the end of that time period?

You are going to save money for your son’s education. You have
decided to place $579 every half year at the end of the period into
a saving account earning 3.07 percent per year, compounded
semi-annually for the next 5 years. How much money will be in the
account at the end of that time period?

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