Reference no: EM133058096

Questions -

Q1. A car can be purchased for $2000 down payment (Now) + $450 per month for 4 years at the end of each month with a monthly interest rate of .4% monthly. What is the price of the car today?

Q2. Scarlett Johannson wants to start saving up to build a giant Black Widow statue in her front lawn before she retires from acting completely. Her husband's tv show has seen a drop in ratings and she's not on great terms with Disney, so she is going to start saving money for the statue a year from today. It is expected to cost $3,200,000 at the time it is built. If Scarlett saves annually for 24 years into an account with a 2.8% annual return, how much does she need to save per year to afford her statue by the time she retires?

Q3. Taylor Swift has decided that she's going to start her own scarf company. Instead of building from the ground up though, she is going to save up some money and acquire an existing manufacturer. She plans to buy the scarf company in 4 years for $3,800,000 and expects it to cost her $110,000 in overhead and maintenance each year for the following 14 years, which she will pay at the end of the year. She is donating all the profits from this company, so she will covering all associated costs herself. How much does Taylor need to save annually starting NOW if she is going to buy and maintain this company if she saves for 4 annual periods? She is planning on putting her savings into an account with a 2.2% annual return.