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Future Value of a Single Payment EASY PROBLEMS 18 If you deposit $10,000 in a bank account that pays 10% interest annually, how much will
Future Value of a Single Payment EASY PROBLEMS 18 If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years? What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually? Present Value of a Single Payment (4-3) Interest Rate on a Single Payment (4-4) Number of Periode of a Single Payment (4-5) Number of Periods for an Annuity Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? If you deposit money today in an account that pays 6,5% annual interest, how long will it take to double your money? You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be? Future Value: Ordinary Annuity versus Annuity Due (4-7) Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4. $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is this investment's present value? Its future value? (4-8) Annuity Payment and EAR You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amor tived over 5 years (60 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment? What is the loan's EFF%
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