Question
Clearly answer the following questions.,,, Calculate the present value of an annuity of $6,000 received quarterly that begins today and continues for 25 years, assuming
Clearly answer the following questions.,,,
Calculate the present value of an annuity of $6,000 received quarterly that begins today and continues for 25 years, assuming a discount rate of 8%.
Calculate the future value of an ordinary annuity of $2,000 paid every quarter fo 10 years, assuming an annual earnings rate of 7%.
Calculate the future value of a quarterly annuity of $2,000 beginning today and continuing for 10 years, assuming an annual earnings rate of 7%.
Calculate the quarterly payment to be received over 5 years from a single investment of $50,000 earning 8%, compounded quarterly.
Today Jim Jones purchased a new sports car for $80,000. He expects it to decrease in value at a rate of 6% compounded annually for the next 5 years. How much will the car be worth at the end of the 5th year if his expectations are correct.
Tina, who just turned 18, deposits $20,000 gift into an interest bearing account earning 2% annual rate of interest compounded monthly. How much will she have in the account when she retires at 60 assuming all interest is reinvested at the 2% rate?
Billy wants to give his daughter $150,000 on her graduation date in 5 years. How much should he invest today at an annual interest rate of 3% compounded annually to have $150,000 in 5 years?
Mike expects to receive $100,000 from the sale of his business in 5 years. What is the current value of his business if it is discounted at 9% compounded semiannually?
Jack expects to receive $1,000,000 in 40 years. His opportunity cost is 6% compounded monthly. What is this sum worth to Jack today?
Sarah borrowed $10,000 from her aunt to donate to charity. Sarah paid back $7,000 to her aunt at the end of 3 years. What was the average annual compound rate of interest on Sarah's loan from her aunt?
Calculate the present value of $500,000 to be received in 7 years assuming an annual interest rate of 6%, compounded monthly.
Calculate the future value of $13,500 invested for 10 years assuming an annual interest rate of 6%.
Calculate the future value of $1,000 invested for 100 years assuming an annual interest rate of 8%, compounded monthly.
Calculate the present value of an ordinary annuity payment of $12,500 received quarterly for 30 years assuming a discount rate of 8%.
Calculate the payment to be received at the beginning of each quarter for 6 years from an investment of $15,000 earning 7%, compounded quarterly.
Calculate the monthly payment for a home loan of $150,000 financed at 6.75% over 15 years.
Calculate the NPV of a machine which is bought for $10,000, sold at the end of year 5 for $3,500, and produces the following cash flows: year 1: +$300; year 2: +$600; year 3: +$1200; year 4: +$2400; year 5: +$4800, assume the cost of capital is 6%.
Calculate the IRR of a project that requires an initial cash flow of $10,000, sold at the end of year 5 for $3,500, and produces the following cash flows: year 1: +$300; year 2: +$600; year 3: +$1200; year 4: +$2400; year 5: +$4800.
Calculate the number of months it will take $10,000 to grow to $1,000,000 assuming an annual rate of return of 6%, compounded monthly.
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