The Pirerras are planning to go to Europe 3 years from now and have agreed to se

Question

The Pirerras are planning to go to Europe 3 years from now and have agreed to set aside $140/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 9.5%/year compounded monthly, how much money will be in their travel fund at the end of the third year? (Round your answer to the nearest cent.)

The Johnsons have accumulated a nest egg of $16,000 that they intend to use as a down payment toward the purchase of a new house. Because their present gross income has placed them in a relatively high tax bracket, they have decided to invest a minimum of $1000/month in monthly payments (to take advantage of the tax deduction) toward the purchase of their house. However, because of other financial obligations, their monthly payments should not exceed $1300. If the Johnsons decide to secure a 15-year mortgage instead of a 30-year mortgage, what is the price range of houses they should consider when the local mortgage rate for this type of loan is 8%/year compounded monthly? (Round your answers to the nearest cent.)

Explanation / Answer

1)

FVoa = PMT [(((1 + i)^n) - 1) / i]
Where:
FVoa = Future Value of an Ordinary Annuity
PMT = Amount of each payment (140)
i = Interest Rate Per Period (0.095/12)
n = Number of Periods (3x 12 )

FVoa = 140 [ (((1+0.00791)^36) -1) / 0.0079]

$5,804.50

hello buddy,,, i am extremely sorry for saying this

According to the terms of chegg ,,only one question to be answered at a time. multiple questions in a single post for the worth of 300 points is against its terms of use,,so here is the solution for the 1st question,,,

have a nyc day,,bybye

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.