Your goal is to have $7,500 in your bank account by the end of four years. If the interest rate remains constant at 9% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? (Note: Round your answer for PMT to two decimal places.) $1,312.02 O $1,968.04 O $1,640.03 O $1,804.03 If your deposits were made at the beginning of each year rather than an at the end, by how much would the amount of your deposit change if you sti wanted to reach your goal by the end of four years? (Note: Round your answer for PMT to two decimal places.) $101.57

Your goal is to have $7,500 in your bank account by the end of four years. If the interest rate remains constant at 9% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? (Note: Round your answer for PMT to two decimal places.) $1,312.02 O $1,968.04 O $1,640.03 O $1,804.03 If your deposits were made at the beginning of each year rather than an at the end, by how much would the amount of your deposit change if you sti wanted to reach your goal by the end of four years? (Note: Round your answer for PMT to two decimal places.) $101.57

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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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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2. Calculate how much you would have in a savings account 5 years from now if you invest $1,000 today, given that the interest paid is 8% compounded: a. Annually b. Semiannually c. Quarterly d. Continuously 3. What is the present value of a perpetuity of $80 per year if the discount rate is 11% I 4. If you need $6,000 5 years from now, how much of a deposit must you make in your savings account each year, assuming an 8% annual interest rate? 5. You have applied for a home mortgage of $75,000 to finance the purchase of a new home for 30 years. The bank requires a 14% interest rate. What will be the annual payment? 6. Set up an amortization schedule for a $5,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 15% 7. Suppose that a company borrows $20,000 for 1 year at a stated rate of interest of 9%. What is the annual percentage rate (APR) if interest is paid to the lender a. Annually b. Semiannually c. Quarterly