Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need only answers within an hour (1) If you deposit $4,453 now at 4% interest, how much will you have at the end of

I need only answers within an hour

(1) "If you deposit $4,453 now at 4% interest, how much will you have at the end of 18 years?"

(2) "You are interested in buying a piece of real property that could be worth $324,000 in 7 years. Assuming that your money is worth 10.2%, how much will you be willing to pay for the property?"

(3) "A judge denied a 94-year-old woman s attempt to force a Lottery Commission to pay her $3.14 million winnings up front on the grounds that she otherwise won't live long enough to collect it all. The woman already received an immediate payment of $185,696, and she will receive 25 annual gross checks of $118,173. If a buyer offers to pay the woman $2 million for the 25 annual gross checks of $118,173, what is the buyer's annual interest rate? Enter your answer as a percentage between 0 and 100."

(4) What is the value of Y so that the two cash flows given below are economically equivalent for an annual compound interest of 4.7%? Note: Y could be positive or negative.

Cash flow I

Year 1: ($) 131

Year 2 : ($) 561

Year 3: ($) 59

Year 4: ($) 572

Year 5: ($) -108

Cash flow II

Year 1: ($) 0

Year 2: ($) Y

Year 3: ($)469

Year 4: ($) 0

Year 5: ($)195

(5) "If you deposit $262 now (n=0) and 2 years from now (n=2) you deposit $926 in a savings account that pays 8% annual interest, how much would you have 10 years from now?"

(6) "You are paying into a mutual fund that earns 6.4% annual compounded interest. If you are making an annual contribution of $6,000, how much will be in the fund in 32 years?"

(7) "Joe's starting salary as a mechanical engineer is $77,000. Joe is planning to place a total of 11.8% of his salary each year in mutual funds. Joe expects a 4% salary increase each year for the next 37 years of employment. If the mutual fund will average 8.8% annual return over the course of his career, how much money can Joe expect at retirement?"

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_2

Step: 3

blur-text-image_3

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

Technical Analysis The Complete Resource For Financial Market Technicians

Authors: Charles Kirkpatrick, Julie Dahlquist

3rd Edition

0134137043, 978-0134137049

More Books

Students also viewed these Finance questions

Question

5. How quickly can we manage to collect the information?

Answered: 1 week ago

Question

3. Tactical/strategic information.

Answered: 1 week ago

Question

3. To retrieve information from memory.

Answered: 1 week ago