My question is Q 13 , calculating APR. Thank you
1.460 1,590 x 4. Calculating Annuity Present Value (LO1! An investment offers $5,500 per for 15 years, with the first payment occurring one year from now. If the required turn is 6 percent, what is the value of the investment? What would the value be if payments occurred for 40 years? For 75 years? Forever? 5. Calculating Annuity Cash Flows (LO1] If you put up $38,000 today in exchan for a 5.8 percent, 15-year annuity, what will the annual cash flow be? 6. Calculating Annuity Values [LO1] Your company will generate $57,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 7.8 percent, what is the present value of the savings? 7. Calculating Annuity Values [LO1] If you deposit $4,000 at the end of each of the next 20 years into an account paying 9.7 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years? 8. Calculating Annuity Values (LO1] You want to have $50,000 in your savings account 12 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.2 percent interest, what amount must you deposit each year? 9. Calculating Annuity Values (LO2] Dinero Bank offers you a five-year loan for $50,000 at an annual interest rate of 7.5 percent. What will your annual loan payment be? 10. Calculating Perpetuity Values [LO1] The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $40,000 per year forever. If the required return on this investment is 5.1 percent, how much will you pay for the policy? 11. Calculating Perpetuity Values (LO1] In the previous problem, suppose a sales asso ciate told you the policy costs $650,000. At what interest rate would this be a fair deal? 12. Calculating EAR [LO4] Find the EAR in each of the following cases: x Number of Times Compounded Effective Rate (EAR) Stated Rate (APR) 7% Quarterly Monthly Daily Infinite 10 13. Calculating APR LO4] Find the APR, or stated rate, in each of the following cases Stated Rate (APR) Number of Times Compounded Semiannually Monthly Weekly Infinite Effective Rate (EAR) 12.4% 11.7 9.5 7.9