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Calculate the answer Need formula and procedure Problem 1: (PV, FV) If you deposit $100 in one year, $200 in two years and $300 in
Calculate the answer
Need formula and procedure
Problem 1: (PV, FV) If you deposit \$100 in one year, \$200 in two years and $300 in three years. How much will you have in three years at 7 narrant int arest? How much do these cash flows worth today? 100x+1+0.07)=107FV=PVC(1+1)t Problem 2: (PMT) +300(1007)=628.49 You want to buy a new sports car from Muscle Motors for $43,900. The contract is in the form of a 72 month annuity at an APR of 7.15 percent. What will your monthly payment be? PV=43900 W=72 N=72HY=7.15112=0.6 HV=0PMT=752.01 Problem 3: (PVA) I want to set up a fund with enough money today so that (if something happened to me) my child will be able to draw $50,000 per year for 10 years, and an additional $500,000 at the end of the 10th year. How much do I need to put in this fund today to afford that? Assume r=5%. Problem 4: Suppose you begin saving for your retirement by depositing $2,000 per year in an IRA. If the interest rate is 7.5%, how much will you have in 40 yearsStep by Step Solution
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