Suppose that you are considering whether to enroll in a summer computer-training program that costs $1,500. If you take the program, you will have to give up $750 of earnings from your summer job. You figure that the program will increase your earnings by $250 per year for each of the next 10 years. Beyond that, it is not expected to affect your earnings. Suppose the interest rate is 6%, Use the preceding information to calculate the present value of the wage increase resulting from the training program. Then decide whether the investment is worthwhile, given the present value of the cost of the training program. At this interest rate, the present value of the increase in wages is about of the training. Thus, from a strictly monetary viewpoint, you than the present value of the total cost which is Surticipate in the training program.

Suppose that you are considering whether to enroll in a summer computer-training program that costs $1,500. If you take the program, you will have to give up $750 of earnings from your summer job. You figure that the program will increase your earnings by $250 per year for each of the next 10 years. Beyond that, it is not expected to affect your earnings. Suppose the interest rate is 6%, Use the preceding information to calculate the present value of the wage increase resulting from the training program. Then decide whether the investment is worthwhile, given the present value of the cost of the training program. At this interest rate, the present value of the increase in wages is about of the training. Thus, from a strictly monetary viewpoint, you than the present value of the total cost which is Surticipate in the training program.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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K Suppose you have a student loan of $35,000 with an APR of 6% for 40 years. Complete parts (a) through (c) below. a. What are your required monthly payments? The required monthly payment is $ 192.57. (Do not round until the final answer. Then round to the nearest cent as needed.) b. Suppose you would like to pay the loan off in 20 years instead of 40. What monthly payments will you need to make? 22 The monthly payment required to pay off the loan in 20 years instead of 40 is $ 250.75 (Do not round until the final answer. Then round to the nearest cent as needed.) c. Compare the total amount you'll pay over the loan term if you pay the loan off in 20 years versus 40 years. Total payments for the 40-year loan = $ Total payments for the 20-year loan = $
JUST NEED SUBPARTS D AND E You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 7.0% per year on your investments and you plan to retire in 29 years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 28 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 28th withdrawal (assume your savings will continue to earn 7.0% in retirement)? d. If, instead, you decide to withdraw $70,000 per year in retirement (again with the first withdrawal one…
4. Consider a credit card with a balance of $7000. You wish to pay off the credit card, which has an APR of 17.99%, within 1 year. Calculate the following. Round your answer to the nearest cent, if necessary. a. Find the number of months you will need to pay the credit card if you pay $585 per month. b. Will you meet your goal and have the credit card paid in one year?
Please provide the steps to solving this problem using a financial calculator: You just opened a brokerage account, depositing $3,500. You expect the account to earn an interest rate of 9.652%. You also plan on depositing $4,500 at the end of years 5 through 10. What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return?
You are interested in saving for a trip when you graduate in three years. You can save $75 each of the next 36 months and earn 2.75% interest on your money. How much money would you have in your savings account in 36 months for your trip? ( Please reference the loan infromation in the "Task 5 Data " cells as the argument for your functions
You have an outstanding student loan with required payments of $600 per month for the next four years. The interest rate on the loan is 10% APR. You are considering making an extra payment of $150 today (that is, you will pay an extra $150 that you are not required to pay). If you are required to continue to make payments of $600 per month until the loan is paid off, what is the amount of your final payment? What effective rate of return (expressed as an APR with monthly compounding) have you earned on the $150? Now that you realize your best investment is to prepay your student loan, you decide to prepay as much as you can each month. Looking at your budget, you can afford to pay an extra $300 per month in addition to your required monthly payments of $600, or $900 in total each month. How long will it take you to pay off the loan?
SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.)At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.)How much difference would it make if the payments were made at the beginning of the month rather than at the end? Answer: a.) F = P6,464.67, b.) F value difference = P196.63
Use Excel to answer this question: You want to borrow money from your bank to purchase a car. The maximum amount you are willing to pay is $450 per month. How much can you borrow if the loan lasts for 7 years, your first payment starts today, and the interest rate is 4.5% APR under monthly compounding? $32,495.13 O$29,489.45 O $31,576.98 O $27,456.87
Please solve via excel and show calculation steps to solve table. Scenario: You have decided to finance a new home. The loan is for $248,000 and you are getting a rate of 5.9% per year compounded monthly. You have decided on a 15-year mortgage and will make monthly payments (end of the month). You decided you will pay 5% down at the beginning. You are working extra hours and expect to pay an extra $350 per month to knock down the principle. You make these payments for 6 years starting on month 25. The last EXTRA payment is on month 96. Build the amortization table. What month will you make your last payment? How much will your last payment be?
Task 3: Answer the following: a. Waleed wants to find out the annual rate of interest, will a principal RO 275 to amount to RO 9275 in 19 years? b. Saif is planning to buy a house in 19 years. He wants to invest RO 275 now and hopes to have RO 9275 to spend on the house when he buys it. What kind of interest rate would he need if his investment is compounded monthly? c. By using Excel, solve the following: (Note provide a screenshot of your work) If you have R.O. 9275 and you want to make a small business that will provide you a steady income for 19 year. Currently, banks are paying 19% compound interest on the annual basis. How much would you be able to receive at the end of each year?
Suppose you have a student loan of $25,000 with an APR of 12% for 20 years. Complete parts (a) through (c) below. a. What are your required monthly payments? The required monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) b. Suppose you would like to pay the loan off in 10 years instead of 20. What monthly payments will you need to make? The monthly payment required to pay off the loan in 10 years instead of 20 is $ (Do round until the final answer. Then round to the nearest cent as needed.) c. Compare the total amount you'll pay over the loan term if you pay the loan off in 10 years versus 20 years. Total payments for the 20-year loan = $ Total payments for the 10-year loan = $
You want to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $5,900 per year, beginning immediately. You will make 3 deposits in an account that pays 6.2% interest. Under these assumptions, how much will you have 3 years from today? a. $19,605.44 Ob. $19,840.95 c. $23,330.48 d. $19,986.92 e. $21,173.88

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