Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, I am needing help with these questions. The correct answers are the numbers in blue, just getting confused on which formulas need to be

image text in transcribed

Hello,

I am needing help with these questions. The correct answers are the numbers in blue, just getting confused on which formulas need to be inputted. Please show the work on how you got these answers.

Thank you for your time.

image text in transcribed estion 1 0 / 1 point What is the accumulated sum of the following stream of payments? $10,146 every year at the beginning of the year for 3 years, at 6.79 percent, compounded annually. Round the answer to two decimal places. Answer: (34,761.77) Question 2 0/1 point You have accumulated some money for your retirement. You are going to withdraw $64,197 every year at the beginning of the year for the next 28 years starting from today. How much money have you accumulated for your retirement? Your account pays you 17.23 percent per year, compounded annually. To answer this question, you have to find the present value of these cash flows. Round the answer to two decimal places. Answer: (431,690.06) estion 1 0 / 1 point You have decided to place $800 in equal deposits every month at the beginning of the month into a savings account earning 11.59 percent per year, compounded monthly for the next 12 years. The first deposit is made today. How much money will be in the account at the end of that time period? Round the answer to two decimal places. Answer: (250,165.68) Question 2 0/1 point What is the present value of the following annuity? $1,742 every half year at the beginning of the period for the next 13 years, discounted back to the present at 9.32 percent per year, compounded semiannually. Round the answer to two decimal places. Answer: (27,152.60) Question 3 0/1 point estion 1 You plan to buy a house in 8 years. You want to save money for a down payment on the new house. You are able to place $311 every month at the end of the month into a savings account at an annual rate of 3.40 percent, compounded monthly. How much money will be in the account after you made the last payment? Round the answer to two decimal places. Answer: (34,255.62) Question 4 0/1 point You are going to save money for your son's education. You have decided to place $1,627 every half year at the end of the period into a saving account earning 7.81 percent per year, compounded semi-annually for the next 6 years. How much money will be in the account at the end of that time period? Round the answer to two decimal places. Answer: (24,314.19) Question 5 0/1 point A car dealership offers you no money down on a new car. You may pay for the car for 5 years by equal monthly end-of-the-month payments of $488 each, with the first payment to be made one month from today. If the discount annual rate is 5.77 percent compounded monthly, what is the present value of the car payments? Round the answer to two decimal places. Answer: (25,382.25) Question 6 0/1 point What is the present value of the following annuity? $1,239 every quarter year at the end of the quarter for the next 9 years, discounted back to the present at 6.73 percent per year, compounded quarterly? Round the answer to two decimal places. Answer: (33,252.40) 0 / 1 point Big Brothers, Inc. borrows $494,172 from the bank at 17.45 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 5 years. How much will each annual payment be? Round the answer to two decimal places. Answer: (156,060.93) Question 2 0/1 point A commercial bank will loan you $51,999 for 3 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 12.20 percent of the unpaid balance. What is the amount of the monthly payments? Round the answer to two decimal places. Answer: (1,732.08) Question 3 0/1 point You need to accumulate $63,108 for your son's education. You have decided to place equal year-end deposits in a savings account for the next 7 years. The savings account pays 14.25 percent per year, compounded annually. How much will each annual payment be? Round the answer to two decimal places. Answer: (5,836.00) Question 4 0/1 point You plan to buy the house of your dreams in 5 years. You have estimated that the price of the house will be $91,969 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 10.51 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams? Round the answer to two decimal places. Answer: (1,171.73) What is the present value of a $670 perpetuity discounted back to the present at 3.85 percent. The answer should be calculated to two decimal places. Answer: (17,402.60) Question 2 0/1 point You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 16.01 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) Answer: (17.36) (%) 0/1 point Question 3 You are considering an investment that has a nominal annual interest rate of 13.43 percent, compounded semiannually. Therefore, the effective annual rate, or EAR (annual percentage yield) is _____. Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) Answer: (13.88) (%) 0/1 point Question 4 Assume that the inflation rate during the last year was 1.87 percent. US government T-bills had the nominal rates of return of 5.70 percent. What is the real rate of return for a T-bill? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) Answer: (3.76) Question 5 (%) 0/1 point Large-cap stocks had the nominal rates of return of 8.04 percent. The rate of inflation during the last year was 2.84 percent. What is the real rate of return for large-cap stocks? Round the answer to two decimal places in percentage form. "units" box) (Write the percentage sign in the Answer: You are given an investment to analyze. The cash flows from this investment are End of year 1. $1,450 2. $4,610 3. $959 4. $3,151 5. $928 What is the future value of this investment at the end of year five if 16.21 percent per year is the appropriate interest (discount) rate? Round the answer to two decimal places. Answer: (15,764.26) Question 2 0/1 point You have just purchased an investment that generates the cash flows shown below for the next four years. You are able reinvest these cash flows at 13.90 percent, compounded annually. How much is this investment worth at the end of year four? End of year 1. $216 2. $853 3. $674 4. $225 Round the answer to two decimal places. Answer: (2,418.47) Question 3 0/1 point You have been offered the opportunity to invest in a project that will pay $1,123 per year at the end of years one through three and $7,620 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 6.89 percent per year. What is the future value of this cash flow pattern at the end of year five? Round the answer to two decimal places. Answer: (19,885.56) 1. You placed $8,714 in a savings account today that earns an annual interest rate of 6.63 percent, compounded semiannually. How much will you have in this account at the end of 28 years? Assume that all interest received at the end of the period is reinvested the next period. Round the answer to two decimal places. - No text entered This question has not been graded. on 2 0 / 1 point To what amount will the following investment accumulate? $3,781, invested today for 33 years at 3 percent, compounded annually. Round the answer to two decimal places. - No text entered This question has not been graded. on 3 0 / 1 point What is the future value in 27 years of an ordinary annuity cash flow of $704 every quarter of a year at the end of the period, at an annual interest rate of 8.89 percent per year, compounded quarterly? Round the answer to two decimal places. - No text entered This question has not been graded. on 4 0 / 1 point Your mother has been working in a small bookstore for many years. Her sales in the first year were $28,302, and her sales in the last year were $66,425. If the sales grew at an average rate of 4.43 percent per year, how many years did your mother sell books in her bookstore? Round the answer to two decimal places. - No text entered - This question has not been graded. on 5 0 / 1 point You need to accumulate $114,480 for your son's education. You have decided to place equal year-end deposits in a savings account for the next 14 years. The savings account pays 6.88 percent per year, compounded annually. How much will each annual payment be? Round the answer to two decimal places. - No text entered This question has not been graded. on 6 0 / 1 point 20 years ago, the average home sale price in your hometown was $75,351. Today the average price of a house is $244,329. What was the average annual rate of change in the price of houses over this time period? (You should calculate the compound growth rate in this problem). Round the answer to two decimal places in percentage form. - No text entered This question has not been graded. on 7 0 / 1 point Camila plans to go for vacation to Australia in 11 years from now. She estimates that she will need 29,358 for the trip. How much does she need to place in a saving account today that earns 6.89 percent per year (compounded quarterly) to accumulate this amount? Round the answer to two decimal places - No text entered This question has not been graded. on 8 on 9 0 / 1 point You have decided to place $684 in equal deposits every month at the beginning of the month into a savings account earning 6.41 percent per year, compounded monthly for the next 7 years. The first deposit is made today. How much money will be in the account at the end of that time period? Round the answer to two decimal places. - No text entered This question has not been graded. 0 / 1 point What is the present value of the following annuity? $4,012 every year at the end of the year for the next 9 years, discounted back to the present at 4.68 percent per year, compounded annually? Round the answer to two decimal places. - No text entered This question has not been graded. on 10 0 / 1 point You have just received an endowment and placed this money in a savings account at an annual rate of 9.56 percent. You are going to withdraw the following cash flows for the next five years. End of year 1. $3,494 2. $5,862 3. $5,865 4. $1,039 5. $11,977 How much is the endowment that you received

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory and Practice

Authors: Eugene F. Brigham, Michael C. Ehrhardt

16th edition

1337902608, 978-1337902601

More Books

Students also viewed these Finance questions