Finance: PV and FV calculations for a cruise, savings account and new boat purchase

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• How much do you need to save at the end of each month so you will be able to afford your cruise in six years?

  FV=PV x (1+rt) = 250 x (1+.06)(40) = 250 x 42.40=10,400 is the amount you will have in your savings account in 40 years 3)You want to have $40,000 to buy a new boat in six years.

• Interest and the time value of money

  FV=PV x (1+rt) = 250 x (1+.06)(40) = 250 x 42.40=10,400 is the amount you will have in your savings account in 40 years 3)You want to have $40,000 to buy a new boat in six years.

• Discussion problem

  FV=PV x (1+rt) = 250 x (1+.06)(40) = 250 x 42.40=10,400 is the amount you will have in your savings account in 40 years 3)You want to have $40,000 to buy a new boat in six years.

• Working on Various Finance Problems

  PV = 207.92 88.5 + 156.63 + 207.92 = $453.05 Answer: 1 Thanks for using BrainMass. Have a good day. This solution provides calculations for various finance problems.

• A fishing company is considering the purchase of a new boat. The company is presently financed by a mix of 70% owners equity ad 30% debt, the after tax cost of capital is 12%. Should they buy it?

  (ii) Should the company lease the boat ** Please see the attached file for the complete solution response ** A fishing company are considering the purchase of a new boat.

• Personal Finance Questions: Annual Payments with Interest

  FV=C*(1+r)^n=33000*(1+7%)^7=$52,990.79 Mary and Joe would like to save up $10,000 by the end of three years from now to buy new furniture for their home. They currently have $1500 in a savings account set aside for the furniture.

• Present value purchase decision

  : A = 3200 / 0.61051 = 5241.52 For part d, we will use the PV formula PV = FV/(1+i)^n PV = 32000/(1.1)^5 = 19869.48 SUV purchase decision based on present value calculations.

• After a protracted legal case, Joe won a settlement

  The formula is: r = 7% n = 8 years FV = PV(1 + r)^n FV = 33,000(1.07)^8 FV = 56,700.14 Question C: Mary and Joe would like to save up $10,000 by the end of three years from now to buy new furniture for their home.

• Time Value of Money

  You invest $250 in your savings account at the end of each year and earn an average of 6% per year in interest. How much will you have in your savings account at the end of forty years? You want to have $40,000 to buy a new boat in six years.