Question
4. If you wish to accumulate $140,000 in 13 years, how much must you deposit today in an account that pays an annual interest rate
4. If you wish to accumulate $140,000 in 13 years, how much must you deposit today in an account that pays an annual interest rate of 14%?
5. What will $247,000 grow to be in 9 years if it is invested today in an account with an annual interest rate of 11%?
6. You are offered an annuity that will pay $24,000 per year for 11 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 13%, what is the annuity worth to you today?
7. If you deposit $16,000 per year for 12 years (each deposit is made at the end of each year) in an account that pays an annual interest rate of 14%, what will your account be worth at the end of 12 years?
8. You plan to borrow $389,000 now and repay it in 25 equal annual instalments (payments will be made at the end of each year). If the annual interest rate is 14%, how much will your annual payments be?
9. You are offered an annuity that will pay $17,000 per year for 7 years (the first payment will be made today). If you feel that the appropriate discount rate is 11%, what is the annuity worth to you today?
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