Maria wants to attend Clarke University. She will need $90,000 eight years from today. Assume Maria's bank pays 6% interest compounded semiannually. What must Maria deposit today to have $90,000 in eight years? verify your answer.
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- Aurora wants to give her daughter Mara a financial gift on the latter's college graduation two years from now. Aurora came across a promotional high-yielding savings account which guaranteed that a deposit of P2,000 today becomes P5,000 during the same period. What is the interest rate in this case if it is compounded quarterly?Frances plans to save money for a down payment on a house using an investment account that pays an interest rate of 5.3% per year. She wants to have $425, 000 available five years from today. Frances intends to deposit an amount today and at the end of each of the next five years into her investment account (i. e. she will make a total of six deposits, all of the same amount). How much will each of these deposits be? (Enter your answer to two decimal places)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.
- Jessica wants to accumulate $13,000 by the end of 6 years in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over the 6-year period. If the bank pays interest at the rate of 5% per year compounded monthly, how much does she have to deposit each month into her account? (Round your answer to the nearest cent.)Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a mortgage from a bank to buy the new house. ANZ bank offered Lisa the lending interest rate of 4.85% per year, compounding semi-annually. Commonwealth Bank offered her the lending rate of 4.83% per year, compounding monthly. By calculating EAR, identify which bank should Lisa choose?if her dad deposits R3570,00 at the end of every six months for the next four years into a bank account. The account pays 8,5% interest per annum, compounded semi-annually. Her father pays and additional R5550,00 into the account for every R3570,00 deposit he makes. The first deposit will be made six months from now. How much money will there be in the account for Aziz to pay for her college expenses?
- Tony Ring wants to attend Northeast College. He will need $50,000 6 years from today. Assume Tony's bank pays 6% interest compounded semiannually. What must Tony deposit today so he will have $50,000 in 6 years? (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount to be depositedYour parents start saving for your sister's college education. She will begin college at age 18 and will need $4,000 per year at the end of each of the next 4 years. They will make a deposit one year from today in an account which pays 6% compounded annually, and an identical deposit each year including the year she starts college. If a deposit of $1,987 will allow them to reach their goal, how old is your sister now?Ms. 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?
- you want to establish a perpetuity that pays $6500 per year. Your banker will establish such an account if you deposit $97000 in her institution. calculate the rate that she is paying on the depositSarah wants to save $20,000 to use for a down payment on a home. She deposits some money into a 4-year certificate of deposit (CD) with an annual interest rate of 4.5% compounded monthly. How much does Sarah need to deposit in the CD to reach her goal of having $20,000 in 4 years? Round your final answer to the nearest dollar.In 10 months, Alex will need $1,320.00 to pay her college tuition. How much does she need to invest today into an account earning an an interest rate of 8.745% compounded monthly, so that she has enough money to pay her tuition? The amount Alex needs to invest is (Note: Your answers should include a dollar sign and be accurate to two decimal places)