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? -X
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- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264Ms. Boatright wants to withdraw $2000 from an account at the end of year 1, $4000 at the end of year 2, $5000 at the end of year 3, and $4,000 at the end of year 4. If she earns an interest rate of 8%, how much money will she need to deposit today to fully fund these withdrawals? How much money will be in her account after she makes the second withdrawal?Will Stephanie have enough funds for her investment in stocks and bonds, when needed? What will be the surplus / shortfall, if any? Given that Stephanie’s bank offers an interest rate of 6% per year, what additional amount should she have deposited as a fixed deposit in the bank so as to accumulate the amount needed for her investment in stocks and bonds when needed? 3. Suppose Stephanie deposited the $50,000 in a fixed deposit. For the shortfall, she thought of purchasing a 5-year ordinary annuity that pays an interest rate of 3.5% per annum, what annual deposit will be required to cover the shortfall? 4. Which of the two options would you recommend for covering the shortfall (Choose between the options in questions 8 and 9 above). Support your response with suitable computation.
- (1)You decide to purchase a new home and need a $100000 mortgage. You take out a loan from the bank that has an interest rate of 7%. What is the yearly payment to the bank to pay off the loan in 20 years? (2) Using T-accounts show what happens to reserves at Security National Bank if one individual deposits $1000 in cash into her checking account and another individual withdraws $750 in cash from her checking account.Carol wants to invest money in an investment account paying 4% interest compounding semi-annually. Carol would like the account to have a balance of $56,000 three years from now. How much must Carol deposit to accomplish her goal? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1). Multiple Choice $28,000 $49,784 $49,726 $49,280One year ago, Sinem deposited $80,000 in her investment account for the purpose of buying a flat fuve years from today. Today she is adding another $20,000 to her account. She plans on making a final deposit of $35,000 to the account one year from today. If the interest rate is 10% how much cash will be available in her investment account when she is ready to buy the flat? (Round 2 decimal places e.g 18.64)
- Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If the bank CD she wants to invest in will pay 7.5 percent annually, how much will she have to invest today Select one: a. 15680.04 OMR O b. 16107.50 OMR O c. 17107.50 OMR d. None of these O e. 16199.03 OMRYou want to set up a college savings plan for your daughter. She is currently 10 years old and will go to college at age 18. You assume that when she starts college, she will need at least $100,000 in the bank. How much do you need to save each year in order to have the necessary funds if the current rate of interest is 7%? Assume that end-of-year deposits are made.Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in interest from it over the next 12 years. How much money should Lily invest in this account to meet her goal? (Use I = Prt) a. $2,000.00 b. $1.670,40 $9.578.54 d. $6,030.27
- a 20 year old college student wants to save $3 a day for her retirement. Every day she places $3 in a drawer. At the end of the year, she invests the accumulated savings ($1095) in a brokerage account with an expected annual return of 12%. 1) how much will she have when she is 65 years old? (Draw a timeline and use both the formula and financial calculator methods) 2) How much must a 40 year old investor needs to deposit annually to catch the 20 year old when the investor becomes 65 years old? (draw a time line and use both the the formula and financial calculator methods)A friend asks to borrow $53 from you and in return will pay you $56 in one year. If your bank is offering a 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $53 instead? b. How much money could you borrow today if you pay the bank $56 in one year? c. Should you loan the money to your friend or deposit it in the bank?Ms. Whitmell is helping her two friends, Sally and Johnny, invest money to save for the future. Sally has $1200 and it is going into a bank account that pays 3.8% per annum, compounded quarterly. Johnny has $1500 going into a bank account that pays 2.5% per annum, compounded semi-annually. When, if ever, will Johnny and Sally have the same amount of money in their bank accounts? **Make sure to check the units of your final answer**