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hope you can help. 6. Practice problems for time value of moneyr What is the halanoe In an account at the end of 10 years

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6. Practice problems for time value of moneyr What is the halanoe In an account at the end of 10 years if 5,000 Is deposited today and the account earns 8% interest compounded quarterly? True or false? The present value of a perpetuity that pays 500.000 per year If the appropriate Interest rate is 10% Is 50.IZDIJ.DDD. George thinks he can save enough to deposit 1,200 In the hank at the end of each year for the next so years. How much will he have If the bank pays 6% Interest, compounded annually? Compute the share value of a company paying a dividend of 3.60 per year Innite maturity. with expected zero growth. the discount rate [ll Is assumed to be 1295 yearly. ianel plans to invest an equal amount of 2.030 in an equity fund every year-end beginning this year. The expected annual return on the fund is 15 percent She plans to Invest for 20 years. How much could she expect to have at the end of 2D years? a. 233,620 '3. 1?6.424 c. 204,83"! d. 133,424 At what annual rate would 500 grow to 1,948 In 12 years? a. 11% h. 12% c. 13% d. 13.596 e. 14% What is the future value In 10 years of 1.500 payments received at the end of each year for the next 10 years? Assume an Interest rate of 8%? a. 25260 b. 23.4"."0 c. 15.000 d. 21,?30 a. 18.395 'rou plan to retire 33 years from now. You expect that you will live 27 years after retiring. You want to have enough money upon retirement age to withdraw $150,000 from the account at the end of each year you are expected to live and still have 52,500,000 left in the account at the time of your expected death (60 years from now). you plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 33 years. You expect that you will be able to earn 12% per year on your deposits. How-ever, you only expect to earn 6% per year on your investment after you retire since you will choose to place the money in less risky investments. What equal annual deposits must you make each year to reach your goal? . To triple 1 million. Jodl Invested today at an annual rate of return at 9%. How long wlll it take Jodi to achieve his goal? a. 15.5 years b. 13.9 years c. 1.2.? years d. in years

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