i = 19% (for alla questions)
1. What interest would you make from investing $2400 now over 5 years? Annual interest rate is i %. (Hint: I=F-P) 2. What interest would you make over 3 years if your future worth would be $5000? Annual interest rate is i %. (Hint: I-F-P) 3. You need a product 3 years from now. The supplier provided you with the following options: you receive the product now with a discount of 60% or after 3 years at the cost of $1300 and annual interest rate of i %. How much you will save if you buy it now? 4. You want to expand your business by investing $25.500 now. How much do you have to pay if you decided to delay your business expansion 6 years and how much do you have to pay if you had made this expansion 3 years ago? The annual interest rate is i %. Ciese rate is 1%. 5. You want to expand your business by getting a loan of $25,000 and you requested to pay it over the next 6 years with an annual interest rate of i %. How much is your installment (annual payment) per year? 6. You want to expand your business by getting a loan of $25.000 at an annual interest rate of i % and pay it back on installments of $5500 per year. After how many years you will make profit? 7. You want to expand your business by getting a loan of $40,000 and you requested to pay it back on installments of $6000 per year over the next 10 years. What is the annual interest rate of your loan? 8. You want to run a business that gives you revenue of $5,500 per year and increases gradually with a rate of $500 starting from year 2. What is the present worth if you plan to run this business for 8 years at an annual interest rate of i %? Also, what is equivalent (constant) annual revenue that you can get from this business? 9. Estimate the present worth in year 0 for the cash flows (CF) shown in the table below. The interest rate is i % per year. Year 0 -200 2 600 CFS 600 3 600 4 600 5 -200 6 -200 8 -200 9 800 -200 10. You want to close your budget for the cash flows (CF) shown in the table below. What is the value of X that will make the present worth in year 0 equal to $ 4000 at an interest rate of 1 % per year? Year CF $ 200 300 400 4 600 500 3 700 6 17 800X 11. You want to start a business with an annual interest rate of 1%. On year 5 you will start to get revenue of $5000 per year that will decrease by a rate Gof $1000 from year 8 through 12. Determine the present worth (P) of this business at year 0. 12. You want to start a business with an annual interest rate of 7%. On year 4 you will start to get revenue of $6000 per year that will decrease by a rate g of 3% from year 8 through 12. Determine the present worth (P) of this business at year 0