Question

23. Vincent wants to pay for his nephew's studies. How much money does he owe place,...

23. Vincent wants to pay for his nephew's studies. How much money does he owe place, on the day of his nephew's birth, so that the latter is 20 000 on their 18th birthday, if the interest rate is 6.72% per year, compounded monthly?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A father wants to invest a sum of money (P) into an account today (at time...
A father wants to invest a sum of money (P) into an account today (at time 0), on his son’s birth, so that the son can withdraw 10,000 TL at the start of each of 18th, 19th, 20th, and 21st year birthday to cover his college expenses for 4 years. How much should the father invest into the bank now if the bank pays 12% per year? (Draw the cash flow and show all solutions). 30,375 TL                  b) 5,425 TL               ...
BACKGROUND: Jason wants to know how much money he needs to have in his retirement account...
BACKGROUND: Jason wants to know how much money he needs to have in his retirement account on the day he retires. Jason makes the following ASSUMPTIONS: --He will withdraw a DIFFERENT amount from his retirement account each year he is retired. He will adjust the withdrawals for inflation each year, following his first annual withdrawal. --Jason wants to withdraw the equivalent of $75,000 (in terms of today's dollars) in the FIRST year he is retired. Following this, each withdrawal will...
1) How much money will you accumulate by the end of 30 years if you invest...
1) How much money will you accumulate by the end of 30 years if you invest $200 per month and you start out with $30 000 in the bank? Assume the interest rate your money earns is 8% per year and you start saving next month. a) $55 505 b) $30 000 c) $628 131 d) $626 144 2) How much is the monthly payment on a $250 000 loan for 15 years at 10% interest per year? Assume first...
Hasan wants to accumulate $10,000 in today’s dollars. How much does he need to pay in...
Hasan wants to accumulate $10,000 in today’s dollars. How much does he need to pay in actual dollars at end of years 1,2,3,4 and 5 in order to accumulate the required amount?   The inflation rate is 3% and the market interest rate is 10%.
Ricky Bobby wants to buy a new automobile for $32,000 in 4 years. How much money...
Ricky Bobby wants to buy a new automobile for $32,000 in 4 years. How much money must Ricky's original investment be if he makes a single deposit into into an account with monthly compounding and an annual interest rate of 6.70% in order to reach his goal? Round your answer to the nearest cent.
Michael plans to retire in 40 years. He is now trying to decide how much to...
Michael plans to retire in 40 years. He is now trying to decide how much to save for his retirement. He plans to deposit equal amount at the beginning of each month in a retirement account for 40 years, with his first saving made today. Assume the retirement account pays him an interest rate of 6.6% p.a., compounded monthly and Michael would like to have $2,000,000 in his retirement account 40 years later a)  How much will he have to deposit...
Your friend wants to borrow money from you. He proposes to repay his debt in 4...
Your friend wants to borrow money from you. He proposes to repay his debt in 4 monthly installments of $100, starting this month (i.e., the first payment will occur at the end of month 1). If the monthly interest rate on your savings account is 1.5%, how much would you lend your friend at most? Round your result to the nearest cent, and do not use a $ sign (i.e., if the result is $1012.4671, enter it as 1012.47)...
Your friend wants to borrow money from you. He proposes to repay his debt in 5...
Your friend wants to borrow money from you. He proposes to repay his debt in 5 monthly installments of $200, starting from month 4 (i.e., the first payment will occur at the end of month 4). If the monthly interest rate on your savings account is 1%, how much would you lend your friend at most? Round your result to the nearest cent, and do not use a $ sign (i.e., if the result is $1012.4671, enter it as 1012.47).
Ross has decided that he wants to build enough retirement wealth that, if invested at 7...
Ross has decided that he wants to build enough retirement wealth that, if invested at 7 percent per year, will provide him with $4,200 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires. How much money does he need to contribute per month to reach his goal? First compute how much money he will need at retirement, then compute the monthly contribution to reach that goal. (Do not...
Ross has decided that he wants to build enough retirement wealth that, if invested at 6...
Ross has decided that he wants to build enough retirement wealth that, if invested at 6 percent per year, will provide him with $2,500 monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires. Approximately how much money does he need to contribute per month to reach his goal? $896 $902 $1,948 $2,500