Sarah decided to go to the private college and was able to graduate. However, while she was there, she got a credit card and charged a few spring break and summer trips. By the time she finished school, she had accumulated $15,000 in credit card debt. Her credit card charges 15.99%. Sarah wants to try to pay that off within 5 years.

Sarah decided to go to the private college and was able to graduate. However, while she was there, she got a credit card and charged a few spring break and summer trips. By the time she finished school, she had accumulated $15,000 in credit card debt. Her credit card charges 15.99%. Sarah wants to try to pay that off within 5 years.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

To be able to take her dream vacation, Maya decides to save for 4 years. She opens a savings account with $500. The account pays simple interest at an annual rate of 4%. She doesn't make any more deposits. Answer the following questions. If necessary, refer to the list of financial formulas. (a) How much total interest will Maya earn? (b) What will the total amount in the account be (including interest)?
To be able to take her dream vacation, Donna decides to save for 5 years. She opens a savings account with $600. The account pays simple interest at an annual rate of 2%. She doesn't make any more deposits. 1. How much total interest will Donna earn? 2. What will the total amount in the account be (including interest)?
Kate deposits P5,000 to her bank account every year when she was in highschool for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated ontime), she got a job that pays P250,000ayear. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year
Jessica just graduated from college with a degree in philosophy and has landed herself a great job – at McDonald’s. Now it’s time for her to begin paying back her college loan. For the next 12 years she will be making a monthly loan payment of $232.40. The loan has an APR of 4.75%. What was the amount of Jessica’s college loan? How much interest will Jessica have paid by the end of the loan?
A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $40,000 saved up for when she goes to college in 16 years, assuming the account earns a 4% return.
Diane just graduated with a psychology degree. During college, Diane accumulated $12,000 in student loans. Knowing that you are a business major, she asks you to help her calculate her quarterly loan payment so that she can budget appropriately. Her loan must be paid back completely in five years. The loan payment is due at the beginning of each quarter. The annual interest rate is 8%. Help Diane calculate her quarterly loan payment. n = 5 years x 4=20 i=82=4 = 2%
A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $30,000 saved up for when she goes to college in 17 years, assuming the account earns a 4% return. Annual deposit: $
a) Dylan will start start college in 9 years. Dylans parents want to save a total amount of $32 000 in 9 years before he begins college, to help pay for his college tuition. They plan to save the money by making deposits every month into a savings account that earns 6.3% per year compounded monthly. How much are their regular monthly deposits? b) How much interest will Dylans parents earn on the account?
Rayleene is getting a loan to buy a used car from a seller. The price of the car is $8200.00. She has a down payment of $500.00 and is able to negotiate an interest rate of 5% from her bank. Rayleene is trying to decide whether to get her loan for 3 or 4 years. What is the Amount of Principal.What is the Monthly Payment for a 3 year loan & a 4 year loan.What are the Total Payments.What is the Total Cost of the Loan.Should Rayleene take her car loan out for 3 or 4 years? Why?Gary is buying a used car from a dealership for $15,499.00 so he needs to pay both GST and PST. His down payment is $3000.00, and he is approved for a 4.75% loan.What is the GST.What is the PST.What is the Amount of Principal.What is the Monthly Payment for a 3 year loan & a 5 year loan.What are the Total Payments.What is the Total Cost of the Loan.Should Gary take his car loan out for 3 or 5 years? Why?
To be able to go on a trip to South America, Jane decides to save for 5 years. She opens a savings account with $800. The account pays simple interest at an annual rate of 5%. She doesn't make any more deposits. Answer the following questions. If necessary, refer to the list of financial formulas. (a) How much total interest will Jane earn? X S $0 (b) What will the total amount in the account be (including interest)?
Britta has been accepted into a 2-year medical assistant program at a career school. . Suppose that Britta decided to take out a private loan for 12,00012,000 USD for which loan payments start as soon as the loan amount is deposited in her account and continue for 10 years. The interest rate is 6.1%6.1%.We have to calculate her monthly payment.
Gina has planned to start her college education four years from now. To pay for her college education, she has decided to save $1,000 a quarter for the next four years in a bank account paying 12 percent interest. How much will she have at the end of the fourth year? O a. $16,000 O b. $1,574 O c. $19,116 O d. $20,157

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