Question: Save & Exit Submit Question 3 (of 4) value 25.00 points Biswaroop wants to take a year long vacation in Thailand. He figures he can

 Save & Exit Submit Question 3 (of 4) value 25.00 points

Save & Exit Submit Question 3 (of 4) value 25.00 points Biswaroop wants to take a year long vacation in Thailand. He figures he can live on 45000 bhat per month (1 Canadian dollar = 28 Thai bhat (rouglys). He plans to withdraw that amount at the start of each month from his Thai savings account paying 1% interest compounded monthly a) How much money (in Thai bhat) will he need in his Thai account at the start of his vacation? In order to save up the necessary amount of money. Biswaroop will deposit money at the end of each month for 2 years in a Canadian savings account paying 3% per year compounded monthly. His first deposit will be SP and then each subsequent deposit will increase by $P. b) How much does he need in Canadian dollars so that when he transfers it to his Thal account he has enough bhat for the year? c) What is the PV of an annuity due paying $1 (Canadian) per month for 12 months? d) How big does $P have to be so that he ends up with enough Canadian dollars in his account to start his vacation

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!