Question: You plan to buy a house in three years and would like to put $100,000 down at the time of buying. You would like to

You plan to buy a house in three years and would like to put $100,000 down at the time of buying. You would like to save the money today so that you will have $100,000 in three years. Your savings account offers 6% APR, compounded monthly.

How much money do you need to deposit in your savings account now in order to have $100,000 in three years, without making any other deposits? if you decide to make monthly deposits in the savings account at the end of each month for the next three years; instead of making one single deposit now, what will your monthly deposits be in order for you to have $100,000 at the end?

Step by Step Solution

★★★★★

3.37 Rating (144 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate how much money you need to deposit in your savings account now in order to have 100000 ... View full answer

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 Corporate Finance Questions!

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...

Hello, I am needing help with these questions. The correct answers are the numbers in blue, just getting confused on which formulas need to be inputted. Please show the work on how you got these...

1) you need to accumulate $74,900 for your son's education. You have decided to place equal year-end deposits in a savings account for the next 10 years. The savings account pays 3,44 percent per...

Please answer the questions in the attached document. These are questions that I cannot seem to get. Please round your answers to 2 decimal places. - - - - - - - - - Big Brothers, Inc. borrows...

MATH 106 Week 8 LEO Discussion Topic Exercises Version: 2015-1 Linear Programming 1. Graphically solve the following: Maximize , subject to: f 6x y 2. x y 8 3x y 0 y 0 Solve the given linear...

CAN SOMEONE PLEASE TELL ME IF I GOT THE RIGHT ANSWERS JESUS GOD THIS IS DUE TONIGHT AND THIS IS MY MIDTERM I'M GONNA DIE I NEED HELP. I NEED TO PASS THIS. I LOVE YOU TILL THE END OF THE WORLD IF YOU...

1. You are considering buying a security that makes annual payments (to you) that grow by 1% per year forever, with the first payment made one year from today and in the amount of $2. Your required...

6.Exponential functions are useful in business and economics.Lesson 7 discusses them.Show how the values are entered into your functions and also calculate the amounts of each of the following: a1....

Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control costs? Explain.

CEI and NU were planning a multibillion-dollar merger. Among the terms and conditions of the underlying merger agreement, CEI agreed to purchase all of NU's outstanding shares for $3.6 billion--$1.2...

A traditional approach to planning, mostly used before 1 9 8 0 , that often just extrapolates the past into the future is called capital forescasting. policy capturing. environmental scanning. long -...

Procter & Gamble continues its strategy of focusing its portfolio on Health and Beauty Aids, and so has decided to sell its Bounty Paper Towels business. You are the Manager of Corporate...

Predicting Software Reselling Profits. Taiko Software is a software catalog firm that sells games and educational software. It started out as a software manufacturer and then added third-party titles...

The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are...

On December 31, 2020, Helena Company, a California real estate firm, received two $18,000 notes from customers in exchange for services rendered. The 8% note from El Dorado Company is due in nine...

If Juanita can get a different deal from another dealership with the same cash price and down payment but with a 60 month term and a $180 monthly payment, what will be the APR for this installment...

Find the centroid and moment of inertia of the cross-section and plane.

What is a corporate bond indenture? Differentiate among a mortgage bond, a debenture, and a subordinated debenture.

You are thinking of retiring in about 15 years. You would like to purchase a home now but would like to have it paid off before retirement. You plan to live on reduced income during retirement, so...

Compare future consumption to current consumption. Is one necessarily better than the other? Discuss.

How might someone who unknowingly is committing the fundamental attribution error explain Stanley Milgrams obedience study? a. Subjects in that study were highly influenced by the power of Milgram...

Prejudice is about _____________, while discrimination is about _____________. a. beliefs; perceptions b. perceptions; beliefs c. behavior; attitudes d. attitudes; behavior

According to Robert Sternbergs three components of love, which component addresses the physical aspects? a. intimacy b. passion c. commitment d. concern