You want to purchase a new car in 7 years and expect the car to cost $68,000. Your bank offers a plan with a guaranteed APR of 6.5% if you make regular monthlydeposits. How much should you deposit each month to end up with S68,000 in 7 yoars?You should invest S each month.(Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.)

Payment per period can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv],…

You want to purchase a new car in 7 years and expect the car to cost $68.000. Your bank offers a plan with a guaranteed APR of 6.5% if you make regular monthly deposits. How much should you deposit each month to end up with $68,000 in 7 years? You should invest $ each month. (Round the final answer to the nearest cent as needed, Round all intermediate values to seven decimal places as needed.)

You want to purchase a new car in 7 years and expect the car to cost $68.000. Your bank offers a plan with a guaranteed APR of 6.5% if you make regular monthly deposits. How much should you deposit each month to end up with $68,000 in 7 years? You should invest $ each month. (Round the final answer to the nearest cent as needed, Round all intermediate values to seven decimal places as needed.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
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You want to purchase a new car in 6 years and expect the car to cost $84,000. Your bank offers a plan with a guaranteed APR of 6.5% if you make regular monthly deposits. How much should you deposit each month to end up with $84,000 in 6 years? You should invest $ each month. (Round the final answer to the nearest cent as needed. Round all intermediate values to seven decimal places as needed.)
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You want to save (deposit) $6,631 per year, starting next year, to make a down payment of $79,593 on a vacation home. If you can earn 4.24 percent on your investment, for how many years will you have to make deposits? Answer to 4 decimals.
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You plan to deposit $2,300 per year for 5 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. Assume that your deposits will begin today. What amount will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.
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