Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.You deposit $744 today into a bank account that earns 12% annually. How much will be in your account after 17 years? 2.What is the

1.You deposit $744 today into a bank account that earns 12% annually. How much will be in your account after 17 years?

2.What is the present value of an annuity that pays $295 at the beginning of each year for 12 years if the annuity earns 16% annually?

3.An investment costs $1,000 today and promises to return $2,188 in 22 years. What is the annual return on this investment?

4.If you deposit some money into a bank account today, to the nearest year, how long will it take to triple your deposit if it earns 41% annually?

5.What is the present value of an annuity that pays $330 at the end of each year for 12 years if the annuity earns 2% annually?

6.what is the present value of an annuity that pays $126 at the beginning of each year for 28 years if the annuity earns 11% annually?

7.You borrow $10,000 to be repaid with end of year payments over the next 5 years. What is the annual payment if the annual interest rate on this loan is 22%?

8.You borrow $10,000 to be repaid with end of month payments over the next 5 years. What is the monthly payment if the annual interest rate on this loan is 14%?

9.What is the present value of a perpetuity that pays $54 annually and has an annual rate of return of 15%?

10.What is the present value of an investment that pays $124 at the end of year 1, $76 at the year of year 2, and $235 at the end of year 3 if this investment earns 8% annually

11.An account pays 20% annual interest compounded monthly. What is the effective interest rate on this account?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Quantitative Finance And Risk Management

Authors: Cheng-Few Lee, John Lee

2010th Edition

0387771166, 978-0387771168

More Books

Students also viewed these Finance questions

Question

8. Explain the contact hypothesis.

Answered: 1 week ago

Question

7. Identify four antecedents that influence intercultural contact.

Answered: 1 week ago