Earl Miller, owner of a Papa Gino’s franchise, wants to buy a new delivery truck in 6 years. He estimates the truck will cost $30,000. If Earl invests $20,000 now at 5% interest compounded semiannually. How much more or less will Earl have for the truck at the end of 6 years? (Round your answers to the nearest cent.)
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Earl Miller, owner of a Papa Gino’s franchise, wants to buy a new delivery truck in 6 years. He estimates the truck will cost $30,000. If Earl invests $20,000 now at 5% interest compounded semiannually. How much more or less will Earl have for the truck at the end of 6 years? (Round your answers to the nearest cent.)
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- AI Derover wants to buy a used jeep in five years. He estimates the cost will be $13,000 If he invests $8,500 now at a rate of 10% compounded semiannually, will he have enough money to buy the jeep at the end of five years? Show your work (Round your answer to the nearest cent.) Yes he will have 13,845 60Joe has an amount of money X that he would like to invest in some way. He has two options: He can invest the money in an account that pays an annual effective rate of interest of 9%. Joe would receive an interest payment at the end of each year and reinvest it in another account that pays an annual effective rate of interest of 6%. This will continue for 15 years. Joe can lend the money to his friend Ted, who will repay Joe with a series of 15 yearly payments. Each payment will be $100, and the first payment will occur in one year. Joe will reinvest these payments at an annual effective rate of interest of 6%. Joe notices that the amount of money that he will have at the end of 15 years is the same under either option. To the nearest dollar, what is the amount of money X? A $406.00 B $417.00 C $752.00 D $1,063.00 E $1,111.00Omar wants to buy a house in another 7 years. The type of house he wants to buy is currently selling for OR 50,000, and the price will increase at a compound rate of 10% per year. Omar can presently invest in a bank fixed deposit earning a compound annual rate 14% per year. How much money must Omar deposit in the bank each year to be able to purchase a house in 7 years from now?
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- Tim smith is shopping for a used luxury car. He has found one priced at $27,000. The dealer has told Tim that if he can come up with a down payment of $4,800, the dealer will finance the balance of the price at a 8% annual rate over 3 years (36 months). Assuming that tim accepts the dealer's offer, what will his monthly ( end of month) payment amount be? What will Tim's monthly payment be if the dealer were willing ot finance the balance of the car price at an annual rate of 3.1%?Alvin Miller, owner of Miller Garage, estimates that he will need $18,000 for new equipment in 20 years. Alvin decided to put aside the money today so it will be available in 20 years. Sound Bank offers Alvin 12% interest compounded semiannually. How much must Alvin invest today to have $18,000 in 20 years?Spencer would like to purchase a new car for $12,000. How much will his monthly payments be if he took out a 3-year loan at 7% interest? Show your work.
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