Question
1.Whats the future value of 30,000 after 6 years if the appropriate interest rate is 6% compounded monthly? 2.Suppose you deposited 75,000 in a bank
1.Whats the future value of 30,000 after 6 years if the appropriate interest rate is 6% compounded monthly?
2.Suppose you deposited 75,000 in a bank account that pays 2.50% with daily compounding based on a 360 day year. How much would be in the account after 9 months assuming each month has 30 days ?
3.Your aunt is about to retire and she wants to sell some if her stock and buy an annuity that will provide her with income of 80,000 per year for 20 yrs beginning a year from today. The going rate on such annuities is 5.25% how much would it cost her to buy such an annuity today ?
4What is the PV of an ordinary Annuity with 4 payments of 28,000 at an interest rate of 5.35%?
5. Whats the present value of prepetuity that pays 15,000 per year if the appropriate interest rate is 6.5%?
6. Your fathers employer was aquired and he was given severance payment of 643,500 which he invested at a 7.0% annual rate. How now plans to retire and he wants to withdraw 65,000at the beginning of each year starting at the beginning of this year . How many years will it take to exhaust his funds, i.e. run the account down to zero?
Please answer all questions and show work for each
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