Question

40 years ago, Monica had a balance of $10,000 in her supply account. Today, after making annual contributions for 40 years, Monica has $1,000,000 in the same account. If the account earned annual interest of 8%, how much did she contribute to the account each year?

$3,021.56 $3,821.56 $2,797.74 $1,139.27

Linda is thinking of using Apple Pay to pay her rent, which is $2,100 a month due at the beginning of each month starting today. She is going to put a lump sum of money in a savings account today that will cover her rent for a year. If she earns an APR of 1.8% on the account, how much does she have to deposit into the account?

$24,993.44 $25,408.94 $25,447.06 $24,956.01 Bill took out a $65,000 student loan at the beginning of each school year for the past four years. Since they were student loans, Bill is not obligated to make any payments until now. He will begin making monthly payments in a month to pay back the loan in the next 15 years. The interest rate of the loan is 5%. How much is his monthly payment? $2,056.06 $2,215.47 $2,206.28 $2,316.59 $2,326.25 Walgreens has an 8% coupon bond that matures in 5 years. The bond pays interest semiannually. What is the market price of a $1,000 face-value bond if the yield to maturity is 7%? $1,041.00 $1,011.77 $1,041.58 $1,142.86 $1,053.23

Answer 1

1)	$       3,021.56
Working:
Annual contribution	=-pmt(rate,nper,pv,fv)
	$       3,021.56
Where,
rate	=	8%
nper	=	40
pv	=	$            -10,000
fv	=	$       10,00,000
2)		$       24,993.44
Working:
Present Value of rental payment	=pv(rate,nper,pmt,fv,1)		Where,
		$       24,993.44			rate	=	1.8%/12	=	0.0015
					nper	=	1*12	=	12
					pmt			=	$     -2,100.00
					fv			=	0
3)	$       2,326.25
Working:
Value of loan now	=-fv(rate,nper,pmt,pv,1)			Where,
	$ 2,94,166.03				rate			=	5%
					nper			=	4
					pmt			=	$     65,000.00
					pv			=	0
Monthly Payment	=-pmt(rate,nper,pv,fv)			Where,
	$       2,326.25				rate	5%/12		=	0.004166667
					nper	15*12		=	180
					pv			=	$ 2,94,166.03
					fv			=	0
jeff jeffy Next > < Previous Related Solutions four years ago, tom had $17,200 in his account. in 5 years fron today he expects... four years ago, tom had $17,200 in his account. in 5 years fron today he expects to have $41,600. If he has earned and expects to earn the same return each year from 4 years ago to 5 years from today, then how much does he have today? A. $25,468 B. $28,044 C. $28,094 D. $11,616 E none are within $20 of the tight andwrt Account Balance after 3 years You deposit $1000 into a saving account with 9% interest per annum. Assuming no transactions on the account, determine the account balance after 3 years. Today is Rachel’s 30th birthday. Five years ago, Rachel opened a brokerage account when her grandmother... Today is Rachel’s 30th birthday. Five years ago, Rachel opened a brokerage account when her grandmother gave her $25,000 for her 25th birthday. Rachel has added $400 to this account each month beginning the month after her 25th birthday. Rachel wants to know how much she needs to add to this account to reach her goal of $400,000 in the account by her 40th birthday. Starting one month from today, she plans to contribute a fixed amount to the account... The balance in an investment account years t after the account is opened is given by... The balance in an investment account years t after the account is opened is given by 7500(1.065t). Compute the average rate of change for 2.5 ≤ t ≤ 3.5. (Round your answer to two decimal places.) Δ balance/ Δt=? 10 years ago, John opened a savings account with the Citizens Bank by depositing $10,000. The... 10 years ago, John opened a savings account with the Citizens Bank by depositing $10,000. The account pays 5% simple interest. 5 years after his first deposit, he made another deposit of $5,000. What will be the total amount in the account 5 years from now? Kiran is 22 today and his superannuation account contains exactly $10,000. Assume this balance will earn... Kiran is 22 today and his superannuation account contains exactly $10,000. Assume this balance will earn an average return rate of 6% p.a. compounding semi-annually until his retirement at age 65. Calculate the investment returns (in dollars) this sum will earn in the final year before retirement. Twenty years ago, you invested $10,000 in AAPL at $5.00 per share (split adjusted). Today the... Twenty years ago, you invested $10,000 in AAPL at $5.00 per share (split adjusted). Today the stock is trading for $110 per share.  You are now 50 and preparing to retire in ten years at age 60. Assume you need $7,000 per month starting the first month of retirement; you estimate that the $7,000 needs to increase by 3% annually until your life expectancy at age 90.  The annuity will earn an annual rate of 6.0%; use as the discount rate from... Jane is 40 years old and has $ 50,000 in her investment account equally spread .... Jane is 40 years old and has $ 50,000 in her investment account equally spread . And she plans to put in $ 2000 every year in each of the two funds . (15 % of this grade) Fund A : Current amount : $ 25,000 Historical performance , 10 year average : 8.5 % Fund beta : 1.2 $2000 added ever year Fund B : Current amount : $ 25,000 Historical performance , 10 year average : 4 .5... Ten years ago, you gave Jen $10,000   in exchange for her promise to give you $28,390... Ten years ago, you gave Jen $10,000   in exchange for her promise to give you $28,390 today. What compound annual rate of return was Jen promising? Unfortunately, today Jen told you that he can only give you $8000. If you get the $8000 today, what compound annual rate of return will you earn over the ten-year period?       Ms. Cressida bought a car for $48,000 exactly three years ago. After making an up-front...       Ms. Cressida bought a car for $48,000 exactly three years ago. After making an up-front equity payment of $5,000, she borrowed the rest of the car value from her bank in the form of a five-year loan. She negotiated a loan rate of 2.5% APR with semi-annual compounding. She makes loan payments of an equal dollar amount every two weeks (i.e., biweekly), and her first loan payment was due two weeks after she signed the loan contract.                                                    (10... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What... How would you use SAS Enterprise Miner to create a neural network model of your example? Explain the use of neural networking modeling in predictive analytics. Current Market Mix of Netflix, as detail as possible, please. This is all one question, thank you so much in advance! You must evaluate a proposal... X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup... There are a large number of tasks involved in information technology and programming, and many of... ADVERTISEMENT About @ 2020 WizEdu