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Suppose that you have $100,000 in cash today. You want to find a...
Suppose that you have $100,000 in cash today. You want to find a bank account that...
Suppose that you have $100,000 in cash today. You want to find a bank account that offers an interest rate that will allow you to make withdrawals to pay your monthly expenses of $1,.250, beginning one month from today, for 10 years before exhausting the account. Assume that any savings account we consider pays interest monthly (i.e., monthly compounding). What APR must the account offer in order for you to achieve your goal? ,,ie 7.45% 10.43% 8.69% E ) 9.16%...
Suppose that you have $50,000 in cash today. You want to find a bank account that...
Suppose that you have $50,000 in cash today. You want to find a bank account that offers an interest rate that will allow you to make withdrawals to pay your monthly expenses of $1,000, beginning one month from today, for 5 years before exhausting the account. Assume that any savings account we consider pays interest monthly (i.e., monthly compounding). What APR must the account offer in order for you to achieve your goal? C) 7.42% 47.33% 10.44% 5.00% 8.37%
Three years ago, you made a deposit in a savings account with a 4% APR. The...
Three years ago, you made a deposit in a savings account with a 4% APR. The bank pays interest monthly with no compounding. Today you have $1680 in the bank. What was your original deposit?
1. My credit card charges interest of 0.04% per day compounded daily. (a) What is the...
1. My credit card charges interest of 0.04% per day compounded daily. (a) What is the APR for this credit card? (b) What is the APY? Assume 360 days in a year (twelve 30-day months). 2. A local credit union is advertising a car loan with an APR of 6.75%. If interest is compounded monthly, (a) what is the interest rate per compounding period, and (b) what is the effective annual interest rate (i.e., the APY)? 3. Your local credit...
You will be asked to find the simple interest for an account. You have $10,000 in...
You will be asked to find the simple interest for an account. You have $10,000 in a savings account that pays 2% simple interest per year. Find the interest earned for the first year. Find the balance on an account that accrues compound interest . Given an investment, APR, compounding rate and length of investment find the balance after maturity. You have $10,000 in a savings account that pays 2% APR compounded monthly. Find the balance on the account after...
Today is your 25th birthday, and you want to save $1.6 Million by your birthday at...
Today is your 25th birthday, and you want to save $1.6 Million by your birthday at age 70. If you expect to earn 6% APR compounded monthly in your retirement account, what constant payment at the end of each month must you deposit into the account through your 70th birthday in order to reach your retirement savings goal on your 70th birthday? (Answer to the nearest penny.)
Today is your 25th birthday, and you want to save $1.9 Million by your birthday at...
Today is your 25th birthday, and you want to save $1.9 Million by your birthday at age 70. If you expect to earn 6% APR compounded monthly in your retirement account, what constant payment at the end of each month must you deposit into the account through your 70th birthday in order to reach your retirement savings goal on your 70th birthday? (Answer to the nearest penny.)
Your best friend consults you for investment advice. You learn that his tax rate is 38%, and he has the following current investments and debts: • A car loan with an outstanding balance of $5,000 and a 4.79 APR (monthly compounding) • Credit cards with
Your best friend consults you for investment advice. You learn that his tax rate is 38%, and he has the following current investments and debts:• A car loan with an outstanding balance of $5,000 and a 4.79 APR (monthly compounding)• Credit cards with an outstanding balance of $10,000 and a 14.94%APR (monthly compounding)• A regular savings account with a $30,000 balance, paying a 5.44% effective annual rate (EAR)• A money market savings account with a $100,000 balance, paying a 5.25% APR (daily compounding)• A tax-deductible home...
Show the excel formulas used Ex. 1 You have $5,000 in your savings account that pays...
Show the excel formulas used
Ex. 1 You have $5,000 in your savings account that pays 4% interest. How much will you have in your account after 20 years, a) if your bank pays annually compounded interest? b) if your bank pays monthly compounded interest? c) if your bank pays daily compounded interest? Current balance Interest Years Compounding Annually Monthly Daily a) FV b) FV c) FV Ex. 2 If you need $10,000 in 7 years and you can earn...
You want to borrow $100,000 from your local bank to buy a new sailboat. You can...
You want to borrow $100,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 72-month APR loan? Please show steps for full credit
Suppose that you have $100,000 in cash today. You want to find a bank account that offers an interest rate that will allow you to make withdrawals to pay your monthly expenses of $1,.250, beginning one month from today, for 10 years before exhausting the account. Assume that any savings account we consider pays interest monthly (i.e., monthly compounding). What APR must the account offer in order for you to achieve your goal? ,,ie 7.45% 10.43% 8.69% E ) 9.16%...
Suppose that you have $50,000 in cash today. You want to find a bank account that offers an interest rate that will allow you to make withdrawals to pay your monthly expenses of $1,000, beginning one month from today, for 5 years before exhausting the account. Assume that any savings account we consider pays interest monthly (i.e., monthly compounding). What APR must the account offer in order for you to achieve your goal? C) 7.42% 47.33% 10.44% 5.00% 8.37%
Show the excel formulas used
Ex. 1 You have $5,000 in your savings account that pays 4% interest. How much will you have in your account after 20 years, a) if your bank pays annually compounded interest? b) if your bank pays monthly compounded interest? c) if your bank pays daily compounded interest? Current balance Interest Years Compounding Annually Monthly Daily a) FV b) FV c) FV Ex. 2 If you need $10,000 in 7 years and you can earn...
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