Question
Calculate the followings 1.You would like to have $45002 in 15 years.. If the rate is 9.72%, how much do you have to invest each
Calculate the followings
1.You would like to have $45002 in 15 years.. If the rate is 9.72%, how much do you have to invest each year?
2.You would like to have $12298 in 19 years. If the rate is 9.34%, how much do you have to invest each month?
3.Your grandfather has an annuity that is worth $88009 today. It will give him monthly payments for 24 years. If the rate is 3.42%, what will be his monthly payment?
4.Your mother has an annuity that will give her monthly payments for 10 years. She tell you it is worth $81080 today. If her required return is 11.20%, what is the monthly payment?
Step by Step Solution
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Step: 1
To have 45002 in 15 years at a rate of 972 we can use the formula for the present value of an annuity PV C 1 1 rn r where PV is the present value of t...Get Instant Access to Expert-Tailored Solutions
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Step: 3
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Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio
Authors: Robert A.Weigand
1st edition
978-111863091, 1118630912, 978-1118630914
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