Question
Show work 1. Find the future value of $10 received today and deposited for 2 years at 6% compounded semiannually. 2.(Future Value of an Annuity)
Show work
1. Find the future value of $10 received today and deposited for 2 years at 6% compounded semiannually.
2.(Future Value of an Annuity) Find the future value of an annuity of $10 each year for 2 years, deposited at 5%.
3.(Future Value of an Annuity Due) How much money will an investor have at the end of 10 years if she deposits $2,300 annually at the beginning of each year into a savings account paying 8% annual interest?
4. (Effective Interest Rate) Find the effective interest rate or APR for the rate paid in the preceding problem number 1, part b. (Carry out two decimal places.)
5. (Present Value of a Single Sum) Find the present value of $10 to be received 2 years from now, assuming an opportunity cost of 5%.
6. Find the present value of a perpetuity paying $50,000 annually if the discount rate is 6%.
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