Question

I am planning on buying a car in three years. I expect that the price of...

I am planning on buying a car in three years. I expect that the price of the model that I want will be $20,000 at that time. I have an investment account in a bank. My plan is to invest some money today and then add $100 each month into this account starting next month. I am expecting to earn 0.6% per month (7.2% APR) from my investments. In order to have $20,000 in 3 years, how much should I invest today (in addition to my monthly savings/investments)?

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 CALCULATOR

NEED HELP WITH FORMULAS, LET ME KNOW, WILL DO IT. THANK YOU

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
I am planning on buying a car in three years. I expect that the price of...
I am planning on buying a car in three years. I expect that the price of the model that I want will be $20,000 at that time. I have an investment account in a bank. My plan is to invest some money today and then add $100 each month into this account starting next month. I am expecting to earn 0.6% per month (7.2% APR) from my investments. In order to have $20,000 in 3 years, how much should I...
I expect to be retired for about 18 years (216 months). I expect to earn 6%...
I expect to be retired for about 18 years (216 months). I expect to earn 6% APR compounded monthly (after-tax) on my investments during my retirement years and I also expect inflation to average about 2.4% annually (compounded monthly). How much do I need to have saved to be able to spend the equivalent of $10,000 per month during each month of my retirement (note that the $10,000 will increase each month to keep my purchasing power at $10,000 in...
I expect to be retired for about 20 years (240 months). I expect to earn 6%...
I expect to be retired for about 20 years (240 months). I expect to earn 6% APR compounded monthly (after-tax) on my investments during my retirement years and I also expect inflation to average about 1.8% annually (compounded monthly). How much do I need to have saved to be able to spend the equivalent of $10,000 per month during each month of my retirement (note that you will be able to spend $10,000 during the first month of retirement and...
I am 31 years old and have $30,000 in savings. I plan on saving $1,000 per...
I am 31 years old and have $30,000 in savings. I plan on saving $1,000 per month until I retire at age 68. I'm of the opinion that I can make 9% on my investments. If the actuaries say that I will live to be 94,and I shift my post-retirement savings to a safer portfolio that delivers a 4% return, how much can I take each month from my portfolio and end up with exactly no money when my time...
Suppose you are 30 years old and want to retire at the age of age 70...
Suppose you are 30 years old and want to retire at the age of age 70 and expect to live another 20 years. On the day you retire, you want to have $1,000,000 in your retirement savings account. i. If you invest monthly starting one month from today and your investment earns 6.0 percent per year, How much money do you need to invest every month until you retire? ii. Now you’re retired with $1,000,000 and you have 20 more...
You need $50,000 in today's buying power 5 years from now. You can earn 3% APR...
You need $50,000 in today's buying power 5 years from now. You can earn 3% APR in real terms on your investments. How much do you have to invest, in nominal terms (the same amount each year), starting next year for 4 years, to just meet your needs, if you expect inflation to be 4% per year? $10,783 $12,768 $6,885 $5,287
In 10 years you are planning on retiring and buying a house in Oviedo, Florida. The...
In 10 years you are planning on retiring and buying a house in Oviedo, Florida. The house you are looking at currently costs $300,000 and is expected to increase in value at a rate of 3%/yr. You can earn 5% annually on your investments, how much must you invest at the end of each month for the next 10 years to be able to buy your dream home for cash when you retire and have $100,000 left over for a...
Currently, I have $6,000 in my bank account that pays 5.2% APR with weekly compounding. In...
Currently, I have $6,000 in my bank account that pays 5.2% APR with weekly compounding. In order to have $15,000 in this account in 4 years, how much money should I add to this account each month starting next month?
I'd like to buy a property. Right now, I have $20,000 in my savings account that...
I'd like to buy a property. Right now, I have $20,000 in my savings account that will grow at a rate of 2% monthly. I am planning to save an additional $300 monthly and that will a grow at 2% per month. How large of a down payment will I be able to afford five years from now?
I am buying a new house today and plan to make some updates and fixes to...
I am buying a new house today and plan to make some updates and fixes to the new place over the next four years. Expenses include: $1,000 for an electric dog fence, installed today but payment is not due until two years from now $8,000 for new laminate flooring in much of the house, installed now and payment is due now $12,000 for a new shower and master bath - will wait four years to do this install and pay...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT