Question
1.You deposit 132 dollars in an account every year for 10 years that earns 4 percent annual interest. How much money is in your account
1.You deposit 132 dollars in an account every year for 10 years that earns 4 percent annual interest. How much money is in your account 10 years from now? (your first deposit will be exactly 1 year from now and your last deposit will be 10 years from now)
2.You deposit 238 dollars in an account every year for 10 years that earns 7 percent annual interest. How much money is in your account 10 years from now? (your first deposit will be exactly 1 year from now and your last deposit will be 10 years from now)
3. IBM. paid a 2.07 dollar dividend today. If the dividend is expected to grow at a constant 3 percent rate and the required rate of return is 5 percent, what would you expect Duff's stock price to be 3 years from now?
4.You deposit 313 dollars in an account every year for 10 years that earns 8 percent annual interest. What is the present value of your deposits today (the present value of the annuity at time 0)? (your first deposit will be exactly 1 year from now and your last deposit will be 10 years from now)
5.How much would you have to deposit each month into an account that earns 4% interest (compounded monthly) if you wanted to have $15,010 8 years from now? (Your first deposit will be one month from now and your last 8 years from now.) Hint: How many months does 8 years equal?
6. You deposit 373 dollars in an account every year for 9 years that earns 4 percent annual interest. What is the present value of your deposits today (the present value of the annuity at time 0)? (your first deposit will be exactly 1 year from now and your last deposit will be 9 years from now)
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