Calculate how long it will take Aina to accumulate enough money to buy the car in each of the investment opportunities. Explain which investment opportunity should be taken by Aina.
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- Aina just got her driver license, and she wants to buy a new car cost for RM70,000. She has RM3,000 to invest as a lump sum today. Aina is a conservative investor and she only invests in safe products. After approaching different banks, she is offered the following investment opportunities. Union Bank’s savings account with an interest rate 10.8% compounded monthly. First State Bank’s savings account with an interest rate of 11.5% compounded annuallyMargaret is planning to invest up to $22,000 in certificates of deposit at City Bank and People's Bank. She wants to invest at least $2000 but no more than $14000 at City Bank. The interest is 6% at City Bank and 7% at People's Bank. This is simple interest for one year. How much should she invest in each bank to maximize her income? What is the maximum income? yDave invests $3,700 in a savings account at his local bank which gives 3.296 simple annual interest. He also invests $3,000 in an online savings account which gives 5.9% simple annual interest. After 15 years, which one will have earned more interest, and how much more interest will it have earned, to the nearest dollar? (Use I = Prt) The online account has $879 more than the local bank b. The online account has $179 more than the local bank C. The local bank has $776 more than the online account. d. The local bank: has $345 more than the ontine account.
- Jill wants to buy a home. Her monthly gross income (GI) is $7,000. She currently has a car payment of $480/month. The bank wants her to escrow $450/month for taxes (T) and insurance (HI). The bank requires the following income and loan ratios; a minimum down payment of 20%, a P&I as a percent of GI ratio < 25%, a P, I, T, & HI as a percent of GI ratio < 28%, a P, I, T, HI and other debt service as a percent of GI ratio < 36%, and a LTV ratio of 80% or less. What is the maximum market value of a home that Jill could purchase given a current market rate on a 30-year fixed rate loan is 4.75%?Kayla Gordan plans to borrow $300,000 from ANZ bank to set up a Nail Salon.She currently has $10,000 in savings and she will use her house as security for the loan.Which of the following best represents a risk associated with this financing method? A.Kayla's proportion of business ownership will be diluted B.Interest payments are tax deductible C.Bank will repossess her house if she defaults on the loan D.Kayla is required to pay dividends to the bankA long time ago Lisa had put an amount of $50,000 into an investment in the securities market. Now she has $150,000 in her investment account. Required: 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 a lending rate of 4.83% per year, compounding monthly. By calculating EAR, identify which bank should Lisa choose? Lisa decided to borrow 350 000 from Commonwealth Bank to buy her new home. The bank offers Lisa a lending rate of 4.83% per year (compounding monthly) and she is expected to make an equal mortgage payment each month for 30 years. Calculate the monthly payment Lisa needs to make for the mortgage? Lisa would like to buy some furniture for the new home. Good Home Furniture offered her the maximum payment credit for the furniture she can buy of $50 a week for one…
- Jing, a recent engineering graduate, never took engineering economics. When she graduated, she was hired by a prominent engineering firm. The earnings from this job allowed her to deposit $1000 each quarter into a savings account. There were two banks that offered savings accounts in her town (a small town!). The first bank was offering 5.0% interest compounded continuously. The second bank offered 5.125% compounded monthly. Jing decided to deposit in the first bank because it offered continuous compounding. Did she make the right decision?(1)You decide to purchase a new home and need a $100000 mortgage. You take out a loan from the bank that has an interest rate of 7%. What is the yearly payment to the bank to pay off the loan in 20 years? (2) Using T-accounts show what happens to reserves at Security National Bank if one individual deposits $1000 in cash into her checking account and another individual withdraws $750 in cash from her checking account.Marisa Gale, a 30-year-old personal loan officer at Second National Bank, understands the importance of starting early when it comes to saving for retirement. She has designated $2,500 per year for her retirement fund and assumes she'll retire at age 65. QUESTION. NO 1.How much will she have if she invests in CDs and similar money market instruments that earn 4 percent on average? Round your answer to the nearest dollar. NO 2.How much will she have if instead she invests in equities and earns 8 percent on average? Round your answer to the nearest dollar. NO 3. Marisa is urging her friend, Nolan Ransom, to start his plan right away because he's 35. What would his nest egg amount to if he invested in the same manner as Marisa and he, too, retires at age 65? Round your answer to the nearest dollar. Nest egg amount at 4% = Nest egg amount at 8% =
- Suppose that you need $30,000 for your last year of college. You could go to a private lending institution and apply for a signature student loan; rates range from 7% to 14%. However, your Aunt Sally is willing to loan you the money from her retirement savings, with no repayment until after graduation. All she asks is that in the meantime you pay her each month the amount of interest that she would otherwise get on her savings (since she needs that to live on), which is 4%.What is your monthly payment to her, and how much interest will you pay her over the year (9 months)?(Fill in the blanks below and give your answers as whole numbers.)The amount of interest per month you would pay Aunt Sally is $__(1)__ .The total interest you will pay her over the year (9 months)is $__(2)__ .SITUATION 3: Vanessa wants to be a 'wise' money saver. She has 20,000 Php and is willing to put it in the bank. She found two banks that accepts saving based on a simple interest. One bank offers 15% simple interest and another offers 10% simple interest, and she invested in both banks. After a year, she withdraws all interest and capital and finds out she has 22,650 Php. 11. How much money did she put on the bank that has the 10% interest? b. 7000 A a. 6000 c. 8000 d. 3000 12. How much money did she put on the other bank? a. 17000 c. 14000 b. 12000 d. 13000 13. If she plans on getting a total of 30,000 Php, how much money shall she add to her original capital if the bank that charges 15% interest can only take a maximum of 20,000 Php investment? a, 7474.74 c. 6363.64 b. 9696.97 d. 8567.13Amir needs 12000 to get his business started as soon as possible. He decides to take a loan from a bank. If the amount of bank discount is 354.15, find the amount of the loan.