Question
1.Payments of $10,000 per quarter are deposited into a fund at the end of each quarter for 11 years. If interest is 8.4% p.a. compounding
1.Payments of $10,000 per quarter are deposited into a fund at the end of each quarter for 11 years. If interest is 8.4% p.a. compounding quarterly, the size of the fund at the end of 11 years will be (to nearest dollar but dont include $ sign or commas):
2.Find the future value in 7 years of the following cash flows: 2,000 in 2 years and 7,000 in 4 years. The interest rate is 7.6% p.a. compounded monthly for the first 5 years and 5.8% p.a. compounded half-yearly thereafter. (Correct your answer to the nearest cent without any unit (No need to put "$"). Do not use "," in your answer. e.g. 123456.78))
3.Your uncle offers to sell you his vintage Rolls Royce. He suggests a payment plan where you pay just $17,000 today, $7000 in 11 months and $12,000 in exactly 20 months from today. If the interest rate is 5.4% per annum compounding monthly, what is the value of the offer (in present day dollars, rounded to the nearest dollar; dont show $ sign or commas)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started