Assume you deposit $8,000 at the end of each year into an account paying 12.7 percent Interest #. How much money will you have in the account in 20 years? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) b. How much will you have If you make deposits for 40 years? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Levy's Payday Loans charges an Interest rate of 14.1 percent per month on loans to its customers. Like all lenders, Levy must report an APR to consumers. 8. What rate should the shop report? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) You are going to make semiannual deposits of $2,500 into a retirement account that earns an APR of 8.5 percent compounded semiannually. If your first deposit will be made six months from now, how large will your retirement account be in 40 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) You make $5,000 annual deposits into a retirement account that pays 8.5 percent Interest compounded semiannually. How large will your account balance be in 40 years? (Do not round Intermediate calculations and round your answer to 2 decimal places, 0.g. 32.16.) Answer is complete but not entirely correct. Account balance 3,168 342.40 You've Just joined the investment banking firm of Elliott & Hampshire. They've offered you two different salary arrangements. You can have $7,500 per month for the next two years, or you can have $6,000 per month for the text two years along with a $35,000 signing bonus today. Assume the Interest rate is 9.3 percent compounded monthly. a. If you take the first option, $7,500 per month for two years, what is the present value? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value of the second option? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) The contract signed in February 2018 by Jimmy Garoppolo that we discussed at the beginning of the chapter was actually paid as a $35 million signing bonus to be pold immediately and a $7.6 million salary for 2018. The remaining salary was $18.6 million in 2019, $25.2 million in 2020, $25.5 million in 2021, and $25.6 million in 2022. If the appropriate terest rate is 14 percent, what kind of deal did the quarterback toss? Assume all payments other than the first $35 million are paid at the end of each year. (Do not round Intermediate calculations and enter your answer in dollars, not milions, rounded to 2 decimal places, e.g. 1,234,567.89.) Present value 107.36
