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- (b) A mechanical engineer who is planning for his daughter's college education plans to start depositing money now (year 0) and continue through year 17. If he deposits RM 5,000 each year, (i) Determine how much will his daughter be able to withdraw each year starting in year 18 and continuing through year 22? Assume the account earns interest at 10% per year.An electrical engineer who is anticipating paying for his daughter’s college education plans to start depositing money now (year 0) and continue through year 17. If he deposits $5000 each year, how much will his daughter be able to withdraw each year starting in year 18 and continuing through year 22? Assume the account earns interest at 8% per year.Suppose that you need $30,000 for your last year of college. You could go to a private lending institution and apply for a signature student loan; rates range from 7% to 14%. However, your Aunt Sally is willing to loan you the money from her retirement savings, with no repayment until after graduation. All she asks is that in the meantime you pay her each month the amount of interest that she would otherwise get on her savings (since she needs that to live on), which is 4%.What is your monthly payment to her, and how much interest will you pay her over the year (9 months)?(Fill in the blanks below and give your answers as whole numbers.)The amount of interest per month you would pay Aunt Sally is $__(1)__ .The total interest you will pay her over the year (9 months)is $__(2)__ .
- Gina has planned to start her college education four years from now. To pay for her college education, she has decided to save $1,000 a quarter for the next four years in a bank account paying 12 percent interest. How much will she have at the end of the fourth year? O a. $16,000 O b. $1,574 O c. $19,116 O d. $20,157To complete your last year in business school and then go through law school, you will need $5,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $5,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 8.5% interest a sum of money that is sufficient to provide the four payments of $5,000 each. His deposit will be made today. Do not round intermediate calculations. Round your answers to the nearest cent. If your answer is zero, enter "0". How large must the deposit be? $ How much will be in the account immediately after you make the first withdrawal? After the last withdrawal? After the first withdrawal: $ After the last withdrawal: $Margaret is planning to invest up to $22,000 in certificates of deposit at City Bank and People's Bank. She wants to invest at least $2000 but no more than $14000 at City Bank. The interest is 6% at City Bank and 7% at People's Bank. This is simple interest for one year. How much should she invest in each bank to maximize her income? What is the maximum income? y
- To complete your last year in business school and then go through law school, you will need $20,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $20,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 8.5% interest a sum of money that is sufficient to provide the four payments of $20,000 each. His deposit will be made today. Do not round intermediate calculations. Round your answers to the nearest cent. If your answer is zero, enter "0"To complete your last year in business school and then go through law school, you will need $20,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $20,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 6.62% interest a sum of money that is sufficient to provide the 4 payments of $20,000 each. His deposit will be made today. How large must the deposit be? Round your answer to the nearest cent.$ How much will be in the account immediately after you make the first withdrawal? Round your answer to the nearest cent.$ How much will be in the account immediately after you make the last withdrawal? Round your answer to the nearest cent. Enter "0" if required$A local firm sponsors a student loan program for the children of employees.No interest is charged until graduation, and then the interest rate is 5%. Maria borrows $9000 per year, and she graduates after 4 years. Since tuition must be paid ahead of time, assume that she borrows the money at the start of each year. If Maria makes five equal annual payments, what is each payment? Use the cash flow from when she started borrowing the money to when it is all paid back, and then calculate the internal rate of return for Maria’s loan. Is this arrangement attractive to Maria?
- 1. Mr. Lima borrowed ₱50,000 from a lending firm to start a mini-store business. If the firm charges simple interest of 5%, how much must Mr. Reyes pay in three years? 2. At what simple interest rate must ₱100,000 be invested so as to gain an interest of ₱10,000 after 5 years? 3. In preparation for Sandara’s college education, her parents want to save ₱400,000 after 12 years. How much should they deposit in a bank providing an interest rate of 2% compounded quarterly? 4. How long should ₱50,000 be invested at 6% compounded semi-annually if it should earn an interest of ₱10,000? 5. A cellular phone may be purchased at ₱1,500 payable monthly for 18 months. The first payment is due after 3 months. How much is the cellular phone if the interest rate is 12% convertible monthly? 6. Warlo bought a laptop that is payable by monthly installment of ₱1,800 for 12 months starting at the end of 2 months. How much is the cash value of the laptop if interest is at 10% convertible monthly? 7.…2. Andy is planning to buy a car when he graduates from college 4 years from now. The estimated valueof the car is $25000. He will need to make a down-payment equal to 20% of the value of the car. Heplans to raise the down-payment by making equal monthly deposits into a bank savings account thatpays interest at the rate of 6% per year, so that he has the down-payment, four years from now. Hewants you to help him Ögure out the minimum monthly deposit he will have to make for the next 4years.(a) What is the monthly interest rate the bank pays?(b) At this moment you do not know the value of the monthly deposit he has to make. Let it be Pdollars per month. Write down an expression for the total value of all the monthly payments hewill deposit, (including interest), over the 4 year period.(c) The expression in part (b) should equal the down-payment he will need for the down-payment.Use that information to determine P . Show the work leading to your answer. Round o§ youranswer to the nearest…Mrs. Maria Alading borrowed 20,000 pesos from her friend Ms. Petra Hausen to pay the tuition fee of her son. How much money will she pay Mrs. Hausen after a year, if an annual simple interest rate of 12 % is asked?