BD309
Pertanyaan :
Status :
100% Tercapai
Keterangan :
Saya sudah selesai mengerjakan assignmet 5 BD309 dengan baik.
bukti :
Abdol Akhim has just come from a Personal Finance class where he learned that he can determine how much his savings will be worth in the future. Abdol is completing his two-year business administration degree this semester and has been repairing computers in his spare time to pay for his tuition and books.
Abdol got out his savings records and decided to apply what he had learned. He has a balance of $1,000 in a money market account at First Savings Bank, and he considers this to be an emergency fund. His instructor says that he should have 3–6 months of his total bills in an emergency fund. His bills are currently $700 a month. He also has a checking account and a regular savings account at First Savings Bank, and he will shift some of his funds from those accounts into the emergency fund. One of Abdol’s future goals is to buy a house. He wants to start another account to save the $8,000 he needs for a down payment.
1. How much interest will Abdol receive on $1,000 in a 365-day year if he keeps it in the money market account earning 2.25% compounded daily?
Description
Principal (P): $1,000
Annual Interest Rate (r): 2.25% or 0.0225 Frequency of Interest Accrual per Year (n): 365 (compounded daily)
Time Period (t): 1 year
FV = P( 1 + r/n ) n.t
FV = 1.000 ( 1+ 0,0225/365 ) 365.1
FV = 1.000 ( 1+0,00006164383 ) 365
FV = 1.000 (1,0227566)
FV = $1.022,76
interest receive :
FV-P
1.022,76-1.000
= $22,76
The interest Abdol will receive on $1,000 in a year is $22.76.
2. How much money must Abdol shift from his other accounts to his emergency fund to have four times his monthly bills in the account by the end of the year?
Target (4 months): 4 x $700 = $2.800
P=FV/ ( 1+r/n ) n.t
P= 2.800 / ( 1+0,0225/365 ) 365.1
P= 2.800 / 1,0227566
P= $2.737,70
The opening balance required today is $2,737.70.
Initial Balance Target: $2,737.70
Existing Balance: $1,000
2.737,70 – 1.000
transfer amount = $1.737,70
3. Abdol realizes he needs to earn more interest than his current money market can provide. Using annual compounding on an account that pays 5.5% interest annually, find the amount Abdol needs to invest to have the $8,000 down payment for his house in 5 years.
Future Value (FV): $8,000
Annual Interest Rate (r): 5.5% or 0.055
Time Period (t): 5 years
Compounding Frequency (n): 1 (annual)
PV=FV/(1+r/n)n.t
PV=8.000/(1+0,055/1)1.5
PV=8.000/(1+0,055)5
PV=8.000/1,306959
PV= $6.120,02
Abdol needs to invest $6,120.02 today in an account that pays 5.5% interest per year in order to have a down payment of $8,000 for his house in 5 years.