Cindy has been working for 8 years, and she’s built up a huge emergency fund -- $45,000, which would be 6 months of her salary. She’s hoping to earn a bit more interest than she currently is with that $45,000 just sitting in her traditional bank’s savings account. Which account would you recommend? Why?
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- Margaret is planning to invest up to $22,000 in certificates of deposit at City Bank and People's Bank. She wants to invest at least $2000 but no more than $14000 at City Bank. The interest is 6% at City Bank and 7% at People's Bank. This is simple interest for one year. How much should she invest in each bank to maximize her income? What is the maximum income? your friend Sue has asked you to help her out as she is developing her financial plan. Help her come up with a plan for her finances and how she can set herself up for financial success! She has an after tax income of $48,000 and budgets $30,000 for required expenses. This leaves $18,000 to spend on debt and savings annually. (Assume all annuity payments are in the form of ordinary annuities.) Part A: Debt Sue has a current balance of $18,000 on her credit card. She has a minimum monthly payment of $500 and an APR of 18.0% (divide by 12 to get the monthly rate). How many months will it take Sue to pay off her credit card debt? Suppose Sue needs to purchase a car. She believes she can spend $550 a month on a car. She has been approved for a 6.0% loan (divide by 12 for monthly rate) for 48 months. What is the maximum amount she can spend on a car so as not to exceed her $550 a month budget? Part B: Savings Sue would like to save up for a down payment on a home she hopes to purchase in 5…Your awesome grandma has decided to use part of her retirement savings to help you through college. You will show your gratitude by taking her on a trip to Europe. (a) Her money is in an account which has 3.4% interest compounded monthly. She has dedicated $28, 000 of her savings the day you start college to send you monthly money at the end of each month for the 45 months you are enrolled in college. How much money do you get from her every month? (b) Finishing college, you get your first job. In order to take you grand- mother to her native Krokazia, you start putting away $450 at the beginning of every quarter in an account with 4.2% annual interest compounded quarterly for 5 years. How much money do you end up with at the end of the 5 years for your trip?
- Your great-aunt wants to help with your college graduation party. She has just placed $5,000 dollars in a bank account that will earn an annual rate of return of 6%. If you graduate in four years, how much will be in your party account?Ms. Whitmell is helping her two friends, Sally and Johnny, invest money to save for the future. Sally has $1200 and it is going into a bank account that pays 3.8% per annum, compounded quarterly. Johnny has $1500 going into a bank account that pays 2.5% per annum, compounded semi-annually. When, if ever, will Johnny and Sally have the same amount of money in their bank accounts? **Make sure to check the units of your final answer**Nana Seinfeld (Jerry’s grandma) invested $1500 at an interest rate of 1.25% compounded annually at the Chemical Bank. Cosmo Kramer found out that the bank on the corner (Home Federal Savings Bank) offers $100 if you go in there and they don’t greet you with a “hello!” They ended up settling on $20 for a “how’s it going.” And yet, Kramer was impressed, and invested $1500 at an interest rate of 1.25% compounded quarterly. a) How much money would be in EACH account at the end of one year? b) Which of these two accounts would you choose to invest your money in to earn the greatest interest?
- Malek and his partner just had a baby. They want to start saving up for the child's college. Their goal is to have $20,000 after 18 years. They find a fund that offers 6% annual interest compounded monthly. They open the account with a starting balance of $0. a) Suppose they will use a spreadsheet to compute their monthly deposit. Choose the correct function from the pull-down menu, and enter the values that you would input into that function. ( b) Enter the above expression into Google sheets. Find the monthly deposit needed to meet their goal. Monthly deposit = $ (Round to the nearest cent) c) What is the total amount of money that they deposit into the account over the 18 years? Total amount deposited = $ (Round to the nearest dollar) d) How much interest would they earn from this investment? Interest = $ (Round to the nearest dollar) Please answer all parts of the question.Suppose that you need $30,000 for your last year of college. You could go to a private lending institution and apply for a signature student loan; rates range from 7% to 14%. However, your Aunt Sally is willing to loan you the money from her retirement savings, with no repayment until after graduation. All she asks is that in the meantime you pay her each month the amount of interest that she would otherwise get on her savings (since she needs that to live on), which is 4%.What is your monthly payment to her, and how much interest will you pay her over the year (9 months)?(Fill in the blanks below and give your answers as whole numbers.)The amount of interest per month you would pay Aunt Sally is $__(1)__ .The total interest you will pay her over the year (9 months)is $__(2)__ .Imagine you are a financial advisor to Valerie VanNess. Ms. VanNess wants to retire in 25 years. She wants to start saving an annual amount at the end of each year until she retires. She expects to live for another 20 years after she retires. During retirement she wants to withdraw $15,000 at the start of each year from a savings account. She can earn 10% per year on balances in this savings account a. How much will Ms. VanNess have to deposit in the savings account at the end of each year for the next 25 years, if the interest rate is 10%, compounded annually? b. How would the yearly deposits be changed if Ms VanNess expects her cat to live for another five years after her death, and she wants to leave an amount in an account that will be used to pay the cat sitter $5500 at the start of each year, for those five years. (Draw a new timeline, or add to your timeline above).
- PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS5.- Sandra Alcocer goes to her bank to ask for your help to get her out of her current predicament. She needs to have $625,000.00 in 6 years. Today she deposits $90,000.00 in an account that pays 8.25% compounded monthly. Sandra wants to know exactly how much she should deposit in two years to complete and have the desired amount at the end of the term. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel. TO CONSIDER THE YEAR AS 360 DAYS (WHICH IS COMMERCIAL) (only if required)Wendy has $23,000.00 invested in a bank that pays 14.25% annually. How long will it take for her funds to triple?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choicesAngela wants to take the next five years off work to travel around the world. She estimates her annual cash needs at $34,000 (if she needs more, she will work odd jobs). Angela believes she can invest her savings at 8% until she depletes her funds. (Click the icon to view Present Value of $1 table.) of $1 table.) (Click the icon to view Future Value of $1 table.) of $1 table.) Read the requirements. (Click the icon to view Present Value of Ordinary Annuity (Click the icon to view Future Value of Ordinary Annuity Requirement 1. How much money does Angela need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 8% interest rate, Angela needs