Question
1.You will deposit $500 each year into an investment account that earns 8% interest (an APR, with interest compounded annually). Your first deposit will be
1.You will deposit $500 each year into an investment account that earns 8% interest (an APR, with interest compounded annually). Your first deposit will be exactly one year from today, and you'll make a total of 10 deposits. How much will be in your account 10 years from today? show BAII plus wokrin process
2.An investment offers $150 per year forever, with the first payment occuring today. If the interest rate is 9.50% (per year, with annual interest compounding), the value of the entire investment today is $_____________. show BAII plus wokrin process
3.You have saved $6000 for a down payment on a new car. The monthly payment you can afford is $410. You will make payments for 48 months (starting 1 month from today). If the relevant interest rate is 0.60% per month (this is an Effective Monthly Rate), the price of the car you can afford (taking into account the down payment as well) is $_______________. show BAII plus wokrin process
4.You will deposit $150 each of the next five years (the first deposit will occur one year from today, and there will be a total of 5 equal deposits) into an account that pays a 6.50% effective annual rate. Six years from today, you wish to have exactly $1000 in the account. You would need to deposit an additional $_______ into the account six years from today to meet that goal.show BAII plus wokrin process
5.An investment offers the following cash flows: $450 today, $400 one year from now, $400 in 2 years, and $250 in 3 years. If the relevant interest rate is 5% per year (an APR, with interest compounded annually), what is the value of the investment 3 years from today (immediately after the cash flow at "year 3" occurs)?
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