Question
provide formula please 1.How much interest is earned on $10,000, earning 4%, for 5 years, compounded semi-annually? 2.What is the maturity value (future value) of
provide formula please
1.How much interest is earned on $10,000, earning 4%, for 5 years, compounded semi-annually?
2.What is the maturity value (future value) of $3,300, at 3%, over 20 years, compounded annually?
3.What is the present value of $10,000, to be received in 5 years, at 6%, compounded quarterly?
4.An "annuity due" is an annuity where the payment is made (or received) at the beginning of the period.A regular annuity's payment is made/received at the end of the period.To see the difference that this timing makes, calculate the following as both a regular annuity (a) and an annuity due (b):
What is the monthly payment required to save $15,000, invested at 14%, compounded monthly, over 3 years?(a) regular annuity, (b) annuity due.
5.How much money will a borrower save if he/she makes monthly payments instead of one lump sum payment?Calculate the total savings in interest on a $15,000 loan, at 14%, over a ten year term.
6.What is the monthly payment required to save $40,000 over 5 years, at 4%, compounded monthly?
7.An investor is faced with two choices:
a.Invest $60,000 today, plus $48,000 each year for 5 years, at 11% compounded annually
b.Invest $50,000 today, plus $50,000 each year for 5 years, at 11% compounded annually
Which is the better investment?
8.An investor invests $1,405.20/month for 4 years, at 8.5%, compounded monthly to reach their goal of $80,000.How much of the $80,000 is interest earned?
9.You have on the lottery!You are given two options, either a lump sum payment of $25,566,712.32 today, or $2,000,000 per year for 25 years.What is the implied interest rate that the state is using to discount the annual cash flow payments?
10.What is the coupon payment on a $1,000 bond with a 9% coupon rate, paid semi-annually?
11.What interest rate is required to invest $905 today in order to have $1,000 in 10 years, compounded semi-annually?
12.What is the present value of $1,000 bond (future value), with a 7% coupon rate, paid semi-annually, over 10 years, if the market rate of interest is 8%?
13.What is the present value of $1,000 bond (future value), with a 7% coupon rate, paid semi-annually, over 10 years, if the market rate of interest is 6%?
14.A home buyer is quoted a monthly payment of $1,700 for a 30 year mortgage of $150,000.What is the APR?If the home buyer can secure a mortgage at a 4% annual rate, what would be the payment?
15.An investor wants to invest $100,000 today to have a retirement nest egg of $1,000,000 in 10 years at 10% annually compounded interest.How many years will this take?
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