Question
1. What is the present value of $679.6 to be received 5 years from now if the discount rate is 20% per year and the
1. What is the present value of $679.6 to be received 5 years from now if the discount rate is 20% per year and the discounting period is annual?
2. What present amount is equivalent to $99 received at the end of 5 years, given an opportunity cost of 16%?
3. What amount received at the end of 15 years is equivalent to $96 received at the end of each year for 15 years, given an opportunity cost of 12%?
4. You know you will need $24,674 at the end of 5 years. How much would you have to deposit annually, starting at the end of the first year, into an account earning 10% to accumulate the needed amount?
5. A 30 year mortgage bears interest at 12% and has a principal of $154,895. What will the annual payments equal?
6. Compute the Future value of an 10 year investment in which you deposit 1000 today.? Assume the opportunity cost is 3%.
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