Question
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?
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