Question
Please show work 6. What is the present value of the 25 annual payments of $50,000 offered to the soon-to-be ex-spouse, assuming a 5% discount
Please show work
6. What is the present value of the 25 annual payments of $50,000 offered to the soon-to-be ex-spouse, assuming a 5% discount rate?
7. Assuming $2000 annual contributions with 9% return, how much will an Individual Retirement Account (IRA) be worth in 30 years?
8. Suppose you begin saving for your retirement by depositing $2,000 per year in an IRA starting at the end of the year. If the interest rate is 7.5%, how much will you have in 40 years?
9. You are saving for a new house and you put $10,000 per year in an account paying 8%. The first payment is made today. How much will you have at the end of 3 years?
10. You are renting a storage warehouse for 6 years. The rent is $6,000 per year payable at the beginning of each year. You want to set aside the money necessary to meet these payments. If the money you deposit in the payment
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