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show full calculations Find the present value of annual payments of $1000 each over 10 years, if interest is j1 = 11% Q10. An heir
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Find the present value of annual payments of $1000 each over 10 years, if interest is j1 = 11% Q10. An heir is to receive an inheritance of $1000 each half-year for 10 years, the first payment to be nade in 6 months. If money is worth ja = 10%, what is the cash value of this inheritance? Ans. $12 462.21 Q11 A contract calls for pnyments of $250 a month for 10 years and an additional payment of S2000 the end of that time. At the beginning of the 5th year (just after the 48th payment is made the contract is sold to a buyer at a price that will yield juz = 14%. What does the buyer pay? Ans. $13 000.17 (additional payment of $2000) Q12 SUIVI LEVE for the first 4 years and ji = 13% for the last 6 years. Ans. $5735.76 VANS Q6. (a) Barbara wants to accumulate $10 000 by the end of 10 years. She starts making quarterly deposits in her savings account, which pays ; ; = 8%. Find the size of these deposits. (6) After 4 years, the bank changes the rate to j= 6%. Find the size of the quarterly deposits now required if the $10 000 goal is to be met. Ans. (a) $165.56; (b) $195.18 Q7. To prepare for early retirement, a self-employed consultant deposits $5500 into a retirement savings plan each year for 20 years, starting on her 31st birthday. When she is 51, she wishes to draw out 30 equal annual payments. What is the size of each withdrawal, if j1 = 12% for the first 10-year period, ji = 10% for the next 10-year period, and ji = 11% for the 30-year retirement period? Ans. $38 878.17 tha and of 08 Anne wants to accumulate $100 000 at the end of 20 years. She deposits $1000 at the end of each of the first 10 years, and $1000+ X at the end of each of the second 10 years. Interest is at ji = 10 %. (a) Find X. (6) If the last four payments of $1000 were missed, what would be the value of X? Ans.(a) $2546.43; (6) $3312.68 09. How much money is needed now to provide for $6000 at the end of each half-year (first payment one half-year from now) for 4 years, if money is worth (@) ja = 8%? (6) 12 = 12%? (c) ja = 16%? Amla) $40 396.47; (6) $37 258.76; (c) $34 479.83Step by Step Solution
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