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Hi! Can you verify that I have completed the attached questions successfully? 1 (Compound interest) To what amount will the following investments accumulate? 1a. $5,000

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Hi! Can you verify that I have completed the attached questions successfully?

image text in transcribed 1 (Compound interest) To what amount will the following investments accumulate? 1a. $5,000 invested for 10 years at 10 percent compounded annually. PN=PV*(1+R)^N PV $5,000.00 R 10% N 10 $12,968.71 1b. $8,000 invested for 7 years at 8 percent compounded annually. PN=PV*(1+R)^N PV $8,000.00 R 8% N 7 $13,710.59 1c. $775 invested for 12 years at 12 percent compounded annually. PN=PV*(1+R)^N PV $775.00 R 12% N 12 $3,019.38 1d. $21,000 invested for 5 years at 5 percent compounded annually. PN=PV*(1+R)^N PV $21,000.00 R 5% N 5 $26,801.91 2 (Future value) Albert Pujols hit 47 home runs in 2009. If his home-run output grew at a rate of 12 percent per year, what would it have been over the following 5 years? PN=PV*(1+R)^N PV 47 R 12% N 5 FV 82.83 3 (Loan amortization) Mr. Bill S. Preston, Esq., purchased a new house for $80,000. He paid $20,000 down and agreed to pay the rest over the next 25 years in 25 equal end-ofPrice of new home Down payment Loan amount Interest Number of years on loan Annual end-of-year payments $80,000 20,000 60,000 9% 25 $6,108.38 4 (Present value) The state lottery's million-dollar payout provides for $1 million to be paid over 19 years in 20 payments of $50,000. The first $50,000 payment is made immed 10% Discount Rate Payment Rate Number of payments Present Value 50,000 10% 20 $468,246.00 20% Discount Rate Payment Rate Number of payments Present Value 50,000 20% 20 $292,174.78 5 (Nonannual compounding using a calculator) Bowflex's television ads say you can get a fitness machine that sells for $999 for $33 a month for 36 months. What rate of intere Loan amount Number of payments Payment amount Monthly rate Annual rate $999 36 $33 0.96832% 11.61985% -of-year payments plus 9 percent compound interest on the unpaid balance. What will these equal payments be? mediately, and the 19 remaining $50,000 payments occur at the end of the next 19 years. If 10 percent is the appropriate discount rate, what is the present value of this stream of c terest are you paying on this Bowflex loan? of cash flows? If 20 percent is the appropriate discount rate, what is the present value of the cash flows

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