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11-15 please with formulas and work 11) if a financial planner promised to pay you $100,000 a year for ever. What is the maximum amount
11-15 please with formulas and work
11) if a financial planner promised to pay you $100,000 a year for ever. What is the maximum amount of money you would pay him today if the interest rate in the market is 5%? 12) Assume that you deposited $100,000 in a bonk that offered 10% annual interest rate. How much would be your annual annuity if you are planning to keep the money on the bank forever? Use the perpetuity formula 13) You want to buy a car for $25,000 that has to be paid in Five years. If the car dealer agrees to finance your car at 8% What would be you annual payment for the car? 14) A bank quoted 10% annual interest rate. If the banked compounds the interest rate quarterly, what would be the effective annual rate (EAR) 15) If you deposited 55,000 in a bank that offers 12 annual interest rate in the bank compounds the interest rate monthly and you want to keep your money for 5 years, how much money you will find in your account is the birth year Step by Step Solution
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