Question
Annuity: Your grandmother has offered to give you $5,000 per year for the next 10 years. What is the present value of this 10-year annuity
Annuity:
Your grandmother has offered to give you $5,000 per year for the next 10 years. What is the present value of this 10-year annuity if the discount rate is 10%? How much will it be worth if you save all the money using the same interest rate? How much is it worth in 10 years?
How long will it take to pay off a loan of $150,000 at an annual rate of 10% if you make an annual payment $18,000 per year?
Upon graduating from medical school 25 years ago, Dr. Nick Riviera was already planning for this retirement. Since then, he has made deposits into a retirement fund on a quarterly basis in the amount of $5000. Nick has just completed his final payment and is ready to retire. His retirement fund has earned 9% (compounded quarterly). How much has Nick accumulated in this retirement account?
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