Question
Round the answer to two decimal places. PLEASE SHOW EQUATIONS 1) What is the present value of the following annuity? $4,910 every half year at
Round the answer to two decimal places. PLEASE SHOW EQUATIONS
1) What is the present value of the following annuity?
$4,910 every half year at the end of the period for the next 10 years, discounted back to the present at 15.06 percent per year, compounded semiannually.
2)You placed $676 in a savings account today that earns an annual interest rate of 4.36 percent, compounded semiannually. How much will you have in this account at the end of 10 years? Assume that all interest received at the end of the period is reinvested the next period.
3)What is the present value of the following annuity?
$3,516 every year at the end of the year for the next 14 years, discounted back to the present at 16.18 percent per year, compounded annually?
4) Large-cap stocks had the nominal rates of return of 10.25 percent. The rate of inflation during the last year was 4.21 percent. What is the real rate of return for large-cap stocks?
5)Stephen plans to purchase a car 2 years from now. The car will cost $66,507 at that time. Assume that Stephen can earn 4.68 percent (compounded monthly) on his money. How much should he set aside today for the purchase?
6) 29 years ago, the average home sale price in your hometown was $89,521. Today the average price of a house is $358,756. What was the average annual rate of change in the price of houses over this time period?(You should calculate thecompoundgrowth rate in this problem).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started