You want to have $25000 saved 5 years from today in order to make a down...

You want to have $25000 saved 5 years from today in order to make a down payment on a house. To fund this, you will make deposits each week from your paycheck into an account that will earn 4.88 percent compounded weekly. How much must you deposit each week?

a. $90.61

b. $84.94

c. $87.22

d. $93.44

e. 96.15

Expert Solution

Payment required	=	FV*r /[(1+r)^n -1]

Future value	FV	25,000.00
Rate per period	r
Annual interest		4.88%
Number of interest payments per year		52
Interest rate per period		0.0488/52=
Interest rate per period		0.09385%


Number of periods	n
Number of years		5
Periods per year		52

number of periods		260


Period payment	=	25000*0.000938/ [(1+0.000938)^260 -1]
	=	84.94

Answer is $84.94

Please rate the answer.

jeff jeffy answered 1 year ago

You want to have $31,000 saved 5 years from today in order to make a down...

You want to have $31,000 saved 5 years from today in order to make a down payment on a house. To fund this, you will make deposits each week from your paycheck into an account that will earn 5.48 percent compounded weekly. How much must you deposit each week?

5.You decide that you need $88,000 in 10 years in order to make a down payment...

5.You decide that you need $88,000 in 10 years in order to make a down payment on a house. You plan to make annual deposits to achieve your goal. If interest rate is 8%, how much should be deposited each time? Hint use the Financial Function “PMT” to solve for the payment and PV will be zero. 6. You owe $46,000 to your parents for funding some of your college. You promise to make 8 annual payments of $8,000 to...

1a) You have an opportunity to invest $25000 today and receive $35000 in 4 years. What...

1a) You have an opportunity to invest $25000 today and receive $35000 in 4 years. What is the expected annual return in percentage terms (or yield)? b) Regarding your answer in (a), please explain if your answer has comprehended the effect of the investment’s value compounding in value or whether you have used a methodology that ignores compounding. In other words is your answer in (a) above a compound return or not? c) You invested $25000 in the ordinary shares...

You want to buy a $1,000,000 house. Suppose you make a20% down payment today, and you...

You want to buy a $1,000,000 house. Suppose you make a20% down payment today, and you finance the rest of your purchase with a 30‐year fixed rate jumbo mortgage of 4.00%. What will be your monthly mortgage payments? How much of your first month’s payment goes toward paying off interest? How much goes toward paying off the loan balance? How much do you still owe after 5 years (i.e., just after your 60th monthly payment)? How long...

You want to have $2319724 saved for retirement. You plan toretire in 33 years. How...

You want to have $2319724 saved for retirement. You plan to retire in 33 years. How much would you need to save to day to meet your retirement goals if your investment is expected to grow at 6% in the market?

You plan on retiring in 30 years and want to have $3,000,000 saved in your retirement...

You plan on retiring in 30 years and want to have $3,000,000 saved in your retirement account. You will earn an average rate of return of 6% on your investments. How much will you need to invest each month in order to get to your goal.

The cost of 15 hp motor 5 years ago was 25000$. Today cost index value is...

The cost of 15 hp motor 5 years ago was 25000$. Today cost index value is 1810 and 1330 was 5 years ago. If the power-sizing exponent is 0.69 find the following: 1) Calculate the cost of 30 hp motor for 5 years ago. 2) Calculate the cost of 30 hp motor today.

1) April wants $7,000 saved in 4 years to make a down payment on a house....

1) April wants $7,000 saved in 4 years to make a down payment on a house. How much money should she invest now at 3.15% compounded semiannually in order to meet her goal? 2) How much will need to be invested at the beginning of every 2 months at 7.7% compounded every 2 months, to pay off a debt of $24,000.00 in 5 years? The every 2 months payments are $. (Round to 2 decimal places.)

The cost of 15 hp motor 5 years ago was 25000$. Today cost index value is 1810 and 1330 was 5 years ago.

The cost of 15 hp motor 5 years ago was 25000$. Today cost index value is 1810 and 1330 was 5 years ago. If the power-sizing exponent is 0.69 find the following:1) Calculate the cost of 30 hp motor for 5 years ago.2) Calculate the cost of 30 hp motor today.

You have won $10,000 today, $20,000 three years from today, and $60,000 eight years from today....

You have won $10,000 today, $20,000 three years from today, and $60,000 eight years from today. As an alternative, you can receive your winnings as a 10-year annuity with the first payment received four years from today. If you require a 6% return on your investment, how much must the annuity pay you each year for you to select that option?

Question