Reference no: EM13769270
PV and loan eligibility
You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will have a 10% APR based on end-of-month payments.
What is the most expensive car you could afford if you finance it for 48 months? Round your answer to the nearest cent.
$
What is the most expensive car you could afford if you finance it for 60 months? Round your answer to the nearest cent.
$
Problem 5-30
Reaching a financial goal
Erika and Kitty, who are twins, just received $45,000 each for their 30th birthdays. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Erika opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 8% per year in the past. Kitty invested in the New Issue Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 19% per year in the fund's relatively short history.
If Erika's fund earns the same returns in the future as in the past, how old will she be when she becomes a millionaire? Round your answer to two decimal places.
years
If Kitty's fund earns the same returns in the future as in the past, how old will she be when she becomes a millionaire? Round your answer to two decimal places.
years
How large would Erika's annual contributions have to be for her to become a millionaire at the same age as Kitty, assuming their expected returns are realized? Round your answer to the nearest cent.
$
|
Examples of ethnicity-based jury nullification
: Summarize the arguments for and against ethnicity-based jury nullification. Include contemporary examples of ethnicity-based jury nullification
|
|
Formulate an argumentative essay
: Cattaraugus County ReHabilitation Center did an effective job of implementing a Balanced Scorecard approach in a fashion that reflects its organizational mission and vision.
|
|
About the time value of money
: You just started working full-time, earning $100,000 per year. Your goal is to have $5 million in your 401(k) plan by your 61st birthday (i.e., 40 years from today). Assume 3% inflation per year.
|
|
Differential association theory to the prison subculture
: Surveillance cameras have caught prison inmates teaching other inmates how to disarm a police officer. Apply Sutherland's Differential Association theory to the prison subculture
|
|
Present value and loan eligibility
: You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will have a 10% APR based on end-of-month payments. What is the most expensive car you could afford if you finance it for 48 months?
|
|
Efforts to revive matthew were to no avail
: Ronald Metzgar placed his fifteen-month-old son, Matthew, awake and healthy in his playpen. Ronald left the room for five minutes and on his return found Matthew lifeless. A toy block had lodged in the boy's throat, causing him to choke to death. Ron..
|
|
Humans experiencing microevolution
: What is the distinction between micro and macroevolution? Can one accept one idea and not the other?
|
|
Future value of an annuity-retirement age
: Your client is 31 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,000 per year; and you advise her to invest it in the stock market, which you expect to provide an average ret..
|
|
Improving the organizations financial position
: Identify at least three objectives for improving the organization's financial position and show how they relate to the mission, vision, and strategy of the organization.
|