1-First City Bank pays simple interest on its savings account balances, whereas Second City Bank pays interest...
Question:
1-First City Bank pays simple interest on its savings account balances, whereas Second City Bank pays interest compounded annually. Both banks pay 10 percent interest. If you made a deposit of $15216 in each bank, how much more money would you earn from your Second City Bank account at the end of 20 years? (Do not round intermediate calculations and provide answer to two decimal places, i.e. 32.16)
2- Compute the future value for the following:
Present Value: 107954
Years: 13
Interest rate: 10
(Provide answer to two decimals, i.e. 32.16)
3- Compute the future value for the following:
Present Value: 62132
Years: 11
Interest rate: 6
(Provide answer to two decimals, i.e. 32.16)
4- Compute the future value for the following:
Present Value: 203739
Years: 32
Interest rate: 8
(Provide answer to two decimals, i.e. 32.16)
5- Compute the present value for the following:
Future Value: 230374
Years: 30
Interest rate: 6
Provide answer with two decimals, i.e. 32.16)
6- Compute the present value for the following:
Future Value: 269019
Years: 14
Interest rate: 11
Provide answer with two decimals, i.e. 32.16)
7- Compute the present value for the following:
Future Value: 140987
Years: 26
Interest rate: 11
Provide answer with two decimals, i.e. 32.16)
8- Solve for the unknown number of years: (Use two decimals, i.e. 32.16)
PV: 2,589
FV: 80,008
Rate:8%
# Years:
9- Solve for the unknown number of years: (Use two decimals, i.e. 32.16)
PV: 2,555
FV: 62,387
Rate:16%
# Years:
10- Solve for the unknown number of years: (Use two decimals, i.e. 32.16)
PV: 3,590
FV: 21,073
Rate:15%
11- Assume the total cost of a college education will be $303,000 when your child enters college in 18 years. You presently have $54,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Enter answer on percent with two decimals, i.e. 32.16)
12- You have $24,000 you want to invest for the next 40 years. You are offered an investment plan that will pay you 7 percent per year for the next 20 years and 9 percent per year for the last 20 years. How much will you have at the end of the 40 years?
(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
# Years:
13-
Year
Cash Flow
1
1083
2
816
3
1267
4
616
Eulis Co. has identified an investment project with the cash flows shown in the table above. If the discount rate is 11 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to two decimals, i.e. 32.16)
14-
Year
Cash Flow
1
1730
2
1017
3
784
4
1488
Vegetable Corp.. has identified an investment project with the cash flows shown in the table above. If the discount rate is 12 percent, what is the future value of these cash flows in year 4? (Do not round intermediate calculations and round your answer to two decimals, i.e. 32.16)
15-
For the following annuity, calculate the annual cash flow.
PV:73000
Years:24
Interest Rate:9%
Annual Cash Flow:
16- If you make a deposit of the amount below at the end of each year for the number of years at the interest rate specified, how much money will you have in the account at the end of that time?(Do not round intermediate calculations, round answer to two decimal places, i.e. 32.16)
Payment:23000
Years:19
Interest Rate:9%
Annual Cash Flow:
17- Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $20,000 per year forever. If the required return on this investment is 6 percent, how much will you pay for the policy? (Round your answer to nearest whole number, i.e. 32)