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please check file for the question and show all calculation. this is a masters degree program and if the calculations are well done i still
please check file for the question and show all calculation. this is a masters degree program and if the calculations are well done i still have more that will be asked for help because i just started this class. i want a tutor that is good in finance to help me with this. thank you
P3-6 (similar to) 1. Suppose the risk-free interest rate is 4.7 % a. Having $200 in one year is equivalent to having what amount today? b. Which would you prefer, $200 today or $200 in one year? Does your answer depend on when you need the money? Why or why not? (Round to the nearest cent.) 2. Calculate the future value of $8,000 in a. 8 years at an interest rate of 10 % per year. b. 4years at an interest rate of 20 % per year. c. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? (Round to the nearest dollar.) 2. Suppose you invest $ 1,150 in an account paying 3 % interest per year. a. What is the balance in the account after 30 years? How much of this balance corresponds to "interest on interest"? (Round to the nearest cent.) 3. Your daughter is currently 9 years old. You anticipate that she will be going to college in 9years.You would like to have $158,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 6 % per year, how much money do you need to put into the account today to ensure that you will have $158,000 in 9 years? Your deposit today should be $ (Round to the nearest dollar.) 4. You have been offered a unique investment opportunity. If you invest $ 10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 ten years from now. a. What is the NPV of the investment opportunity if the interest rate is 8 % per year? Should you take the opportunity? b. What is the NPV of the investment opportunity if the interest rate is 4 % per year? Should you take the opportunity? (Round to the nearest dollar.) 5. You are 28 years old and decide to start saving for your retirement. You plan to save $ 4,000 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age 66. Suppose you earn 6 % per year on your retirement savings. a. How much will you have saved if you wait until age 39 to start saving (again, with your first deposit at the end of the year)? (Round to the nearest dollar.) 6. You are thinking of purchasing a house. The house costs $ 300,000. You have $43,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7 % per year. What will your annual payment be if you sign up for this mortgage? The annual payment is $ (Round to the nearest dollar.) 7. You have just purchased a $300,000 house with a $60,000 cash payment and a 30 year $240,000 mortgage at 4%. How much more principle than the required amount must you pay each month to repay the mortgage in 10 yearsStep by Step Solution
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