MULTIPLE PARTS!! Please look at each or I will review as not complete. Really struggling on these and want to make sure my math is correct.
Which of the following statements is/are correct? Assume that the interest rate (r) is positive. (a) The present value of an annuity due will exceed the present value of an ordinary annuity (assuming all else equal). (b) The future value of an annuity due will exceed the future value of an ordinary annuity (assuming all else equal). O (c) The future value of an ordinary annuity will exceed the future value of an annuity due (assuming all else equal). Statements (a) an (b) are correct. Statements (a) and (c) are correct. You receive $5,000 each month for a year. You receive the first $5,000 payment one month from today. You then receive 12 more monthly payments of $1,500 with the first $1,500 being received 13 months from today and the last $1,500 being received 24 months from today. If your APR is 8% and compounding is done on a monthly basis, what is the value of these cash flows today? Select the range that includes the correct solution. Less than $71,000 Greater than or equal to $71,000, but less than $72,000 Greater than or equal to $72,000, but less than $73,000 Greater than or equal to $73,000, but less than $74,000 Greater than or equal to $74,000 O You receive five annual cash flows of $10,000 with the first cash flow being received today and the last cash flow occurring 4 years from today (i.e., there are 5 total cash flows). You place each $10,000 cash flow into the bank as soon as you receive it. The bank's APR (r) is 6% and compounding is done on an annual basis. Ten years from today, you take all your money out of the bank. How much total do you have? Select the range that includes the correct solution. Less than $79,000 Greater than or equal to $79,000, but less than $80,000 Greater than or equal to $80,000, but less than $81,000 Greater than or qual to $81,000, but less than $82,000 Greater than or equal to $82,000 Commerce Clearing Cottage has agreed to pay you $10,000 every year forever. These payments will be transferred to another recipient upon your death, etc. However, you will not get the first $10,000 until 5 years from today. If the appropriate APR for these cash flows is 5%, what is their value today? Select the range that includes the correct answer. Less than $ 155,000 Greater than or equal to $155,000, but less than $160,000 Greater than or equal to $160,000, but less than $165,000 Greater than or equal to $165,000, but less than $170,000 Greater than or equal to $170,000 You have signed a contract that guarantees you $50,000 one year from today. You will get $60,000 two years from today and $70,000 three years from today. After that the amount you receive will increase by 4% every year into perpetuity. If the appropriate APR is 8%, what is the value of these cash flows today? Select the range that includes the correct answer. Less than $1,500,000 Greater than or equal to $1,500,000, but less than $1,550,000 Greater than or equal to $1,550,000, but less than $1,600,000 Greater than or equal to $1,600,000, but less than $1,650,000 Greater than or equal to $1,650,000
