Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show all work neat and spaced out Calculate: 8 points each 1- The present value of $10,000 to be received on 2/18/31 with a

image text in transcribed
please show all work neat and spaced out
Calculate: 8 points each 1- The present value of $10,000 to be received on 2/18/31 with a 9% d.f. 2- The future value on 2/18/55 of $30,000 earning 6% per year compounded quarterly. 3- How many years' does it take for $25,000 to grow to $60,000 at 6% ? 4- What rate is necessary for $16,000 to grow to $25,000 in 10 years? 5- Suppose you borrowed $45,000 to purchase a new car. The leader charges 4.5% annually and the loan is for 5 years. What is the monthly payment? 6- You sign up for a 401k plan at work and contribute $1,000 each month beginning today. What is account's value on 2/18/2071 if you earn 7% per year and make the last contribution on 1/18/2071? 7- You win the lottery and a $1,000,000 prize. The prize pays monthly installments for 10 years and you discount them at 8%. What is the present value of the prize? 8- You just signed a 39 month lease on a 2021 BMW X-7. The car costs $70,000 and has a residual value of $40,000. If the lease carries a 5% interest rate, what are the monthly payments

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

Step: 3

blur-text-image

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

Intermediate Financial Management

Authors: Brigham, Daves

10th Edition

978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573

More Books