HomeworkLib
Question

Dr. J. wants to buy a Dell computer which will cost $3,300 two years from today....

Dr. J. wants to buy a Dell computer which will cost $3,300 two years from today. He would like to set aside an equal amount at the end of each year in order to accumulate the amount needed. He can earn 7% annual return. How much should he set aside? Use Appendix C to calculate the answer. (Round your final answer to 2 decimal places.)

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Note : table is no provided, my table provides values till 3 decimals

Future value of annuity = PMT X FVIFA @7%,2 YEARS

3300 = PMT X 2.070

PMT = 1594.20

ANSWER : 1594.20 (Thumbs up please)

0 0
Add a comment
Know the answer?
Add Answer to:
Dr. J. wants to buy a Dell computer which will cost $3,300 two years from today....
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Dr. J. wants to buy a Dell computer which will cost $2,500 six years from today....

    Dr. J. wants to buy a Dell computer which will cost $2,500 six years from today. He would like to set aside an equal amount at the end of each year in order to accumulate the amount needed. He can earn 8% annual return. How much should he set aside? Use Appendix C to calculate the answer. (Round your final answer to 2 decimal places.) Multiple Choice $315.79 $340.79 $390.79 $440.79

  • TB MC Qu. 09-13 Dr. J. wants to buy a Dell computer which will cost... Dr....

    TB MC Qu. 09-13 Dr. J. wants to buy a Dell computer which will cost... Dr. J. wants to buy a Dell computer which will cost $2,600 eight years from today. He would like to set aside an equal amount at the end of each year in order to accumulate the amount needed. He can earn 8% annual return. How much should he set aside? Use Appendix C to calculate the answer. (Round your final answer to 2 decimal places.)...

  • Gabe wants to buy a computer in one year. He is working part time earning $800...

    Gabe wants to buy a computer in one year. He is working part time earning $800 per month. The computer Gabe wants to buy cost $2500. He decides to invest money in securities that pay a monthly rate of 1%. How much should Gabe put aside every month to accumulate the required amount.

  • Gabe wants to buy a computer in one year. He is working part time earning $800...

    Gabe wants to buy a computer in one year. He is working part time earning $800 per month. The computer Gabe wants to buy cost $2500. He decides to invest money in securities that pay a monthly rate of 1%. How much should Gabe put aside every month to accumulate the required amount.

  • Samuelson Engines wants to save $750,000 to buy some new equipment six years from now. The...

    Samuelson Engines wants to save $750,000 to buy some new equipment six years from now. The plan is to set aside an equal amount of money at the end of each quarter (with the first deposit 90 days from today). The firm can earn 4.75 percent on its savings. How much does the firm have to save each quarter to achieve its goal? Please show how you got your answer. A) $26,872.94 B) $26,969.70 C) $27,192.05 D) $27,419.29 E) $27,911.08

  • Michael is planning to buy a house in six years and wants to have $45,000 for...

    Michael is planning to buy a house in six years and wants to have $45,000 for a down payment. He can earn 4% on his savings and wants to set aside a constant amount each year for the next six years, beginning in one year. How much will Michael have to save each year? Round to the nearest whole number and no commas. Answer:

  • 18. Your firm wants to save $325,000 to buy some new equipment three (3) years from...

    18. Your firm wants to save $325,000 to buy some new equipment three (3) years from now. The plan is to set aside an equal amount of money on the last day of each quarter starting Jin 3 months' time. The firm can earn a 4.75% rate of return. How much does the firm have to save cach quarter to achieve its goal?

  • John plans to buy a vacation home in 3 years from now and wants to have...

    John plans to buy a vacation home in 3 years from now and wants to have saved $60,518 for a down payment. How much money should he place today in a saving account that earns 7.95 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places

  • John plans to buy a vacation home in 11 years from now and wants to have...

    John plans to buy a vacation home in 11 years from now and wants to have saved $49,349 for a down payment. How much money should he place today in a saving account that earns 9.73 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places

  • John plans to buy a vacation home in 10 years from now and wants to have...

    John plans to buy a vacation home in 10 years from now and wants to have saved $60,326 for a down payment. How much money should he place today in a saving account that earns 9.90 percent per year (compounded daily) to accumulate money for his down payment? Round the answer to two decimal places

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT