Questions from Personal Finance

Q: Using a financial calculator, Excel, or the time value of

Using a financial calculator, Excel, or the time value of money tables in the Chapter 1 Appendix, calculate the following: a. The future value of $550 six years from now at 7 percent. b. The future v...

Q: If you desire to have $12,000 for a down

If you desire to have $12,000 for a down payment for a house in five years, what amount would you need to deposit today? Assume that your money will earn 4 percent.

Q: Pete Morton is planning to go to graduate school in a program

Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have$8,000 available each year for various school and living expenses. If he earns 3 pe...

Q: Carla Lopez deposits $2,800 a year into her retirement

Carla Lopez deposits $2,800 a year into her retirement account. If these funds have an average earning of 7 percent over the 40 years until her retirement, what will be the value of her retirement acc...

Q: If a person spends $10 a week on coffee (assume

If a person spends $10 a week on coffee (assume $500 a year), what would be the future value of that amount over10years if the funds were deposited in an account earning 3 percent?

Q: A financial company that advertises on television will pay you $60

A financial company that advertises on television will pay you $60,000 now for annual payments of $10,000 that you are expected to receive for a legal settlement over the next 10 years. If you estimat...

Q: Tran Lee plans to set aside $2,600 a year

Tran Lee plans to set aside $2,600 a year for the next seven years, earning 3 percent. What would be the future value of this savings amount?

Q: If you borrow $8,000 with a 5 percent interest

If you borrow $8,000 with a 5 percent interest rate to be repaid in five equal payments at the end of the next five years, what would be the amount of each payment? (Note: Use the present value of an...

Q: Using the Rule of 72, approximate the following amounts:

Using the Rule of 72, approximate the following amounts: a. If the value of land in an area is increasing 6 percent a year, how long will it take for property values to double? b. If you earn 10 perce...

Q: In 2019, selected automobiles had an average cost of $16

In 2019, selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $20,000. What was the rate of increase for these automobiles between the two time period...