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pleaas dont answer if youre not going go answer all of them 22. Assume that a gallon of milk costs $3.50 today. If the average
pleaas dont answer if youre not going go answer all of them
22. Assume that a gallon of milk costs $3.50 today. If the average annual inflation rate over the past 35 years was 2.75% p.2., what did a gallon of milk cost 35 years ago? 23. What is the future value on the day of the last deposit of 25 annual deposits of $750 per year (first deposit to be made today) given an interest rate of 5.5% p.a.? 24. Assume that I will deposit $750 into an account exactly 10 years from today. How much will be in my account at the end of year 60 (1.2., 60 years from today), assuming that my account pays interest of 4.5% pa.? 25. The Short Holder bank pays 5.60%p.a., but with daily compounding assume a 360-day year), on a 9- month certificate of deposit . If you deposit $20,000 you would expect to earn in interest (rounded to the nearest dollar). 26. With continuous compounding at 8% p.a. for 20 years, what is the approximate future value of a $20,000 initial investment (rounded to the nearest dollar)? 27. For $1,000 Laura Croft can purchase a 5-year ordinary annuity which will pay her a yearly payment of S263.80 for 5 years. What is the annual interest rate implicit in this investment? Round your answer to the nearest tenth (for example, record 0.4325 as 43.3%- but do not include the percent sign in iCollege) 28. Nathan Drake is considering borrowing $100,000 for 30 years at a compound annual interest rate of 9% p.a. The loan agreement calls for 30 equal annual payments, to be paid at the end of each of the next 30 years (payments include both principal and interest.) What is the annual payment that will fully amortize Nathan's loan? 29. Cloud Strife is going to place $12,500 into a certificate of deposit (CD) at a 6% annual rate (compounded annually) with a maturity of 30 months. How much money will Cloud receive when the CD matures 30. Clementine and Lee expect to deposit the following cash flows at the end of years 1 through 5, $1,000; 54.000 59.000 55.000; and $2,000 respectively. Alternatively, they could deposit a single amount today and have the same amount in your account at the end of years. How large does the single deposit need to be today if Clementine and Lee can earn 10% compounded annually on their account 22. Assume that a gallon of milk costs $3.50 today. If the average annual inflation rate over the past 35 years was 2.75% p.2., what did a gallon of milk cost 35 years ago? 23. What is the future value on the day of the last deposit of 25 annual deposits of $750 per year (first deposit to be made today) given an interest rate of 5.5% p.a.? 24. Assume that I will deposit $750 into an account exactly 10 years from today. How much will be in my account at the end of year 60 (1.2., 60 years from today), assuming that my account pays interest of 4.5% pa.? 25. The Short Holder bank pays 5.60%p.a., but with daily compounding assume a 360-day year), on a 9- month certificate of deposit . If you deposit $20,000 you would expect to earn in interest (rounded to the nearest dollar). 26. With continuous compounding at 8% p.a. for 20 years, what is the approximate future value of a $20,000 initial investment (rounded to the nearest dollar)? 27. For $1,000 Laura Croft can purchase a 5-year ordinary annuity which will pay her a yearly payment of S263.80 for 5 years. What is the annual interest rate implicit in this investment? Round your answer to the nearest tenth (for example, record 0.4325 as 43.3%- but do not include the percent sign in iCollege) 28. Nathan Drake is considering borrowing $100,000 for 30 years at a compound annual interest rate of 9% p.a. The loan agreement calls for 30 equal annual payments, to be paid at the end of each of the next 30 years (payments include both principal and interest.) What is the annual payment that will fully amortize Nathan's loan? 29. Cloud Strife is going to place $12,500 into a certificate of deposit (CD) at a 6% annual rate (compounded annually) with a maturity of 30 months. How much money will Cloud receive when the CD matures 30. Clementine and Lee expect to deposit the following cash flows at the end of years 1 through 5, $1,000; 54.000 59.000 55.000; and $2,000 respectively. Alternatively, they could deposit a single amount today and have the same amount in your account at the end of years. How large does the single deposit need to be today if Clementine and Lee can earn 10% compounded annually on their account Step by Step Solution
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