Lindsey Lohan is a one-woman crime spree. Her apparent disregard for people that chose to walk...

 

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Lindsey Lohan is a one-woman crime spree. Her apparent disregard for people that chose to walk on the sidewalk has resulted in substantial legal fees. She currently owes $350,000. Assume she starts saving money at the end of each month at 8.3% annual interest, and she has already saved $115,000 a. How much would she have to save each period to meet her goal in exactly seven years? b. If she saved $2,000 each month, what interest rate would she need to meet her goal? c. How much would she have to save if she wanted to meet her goal in 4 years instead of 7? (assuming same as a) Relevant Information Annual Interest Rate Periods Per Year Number of Years Needed Information Present Value Future Value Payment Rate Number of Periods Additional Calculations (if needed) Answer: a b PV FV PMT RATE NPER Lindsey Lohan is a one-woman crime spree. Her apparent disregard for people that chose to walk on the sidewalk has resulted in substantial legal fees. She currently owes $350,000. Assume she starts saving money at the end of each month at 8.3% annual interest, and she has already saved $115,000 a. How much would she have to save each period to meet her goal in exactly seven years? b. If she saved $2,000 each month, what interest rate would she need to meet her goal? c. How much would she have to save if she wanted to meet her goal in 4 years instead of 7? (assuming same as a) Relevant Information Annual Interest Rate Periods Per Year Number of Years Needed Information Present Value Future Value Payment Rate Number of Periods Additional Calculations (if needed) Answer: a b PV FV PMT RATE NPER

Answer rating: 100% (QA)

3 3 a To calculate the amount Lindsey Lohan would have to save each period to meet her goal in exact... View the full answer