Question
What is the future value exactly one year after the last deposit of 40 annual deposits of $2,000 per year (first deposit to be made
What is the future value exactly one year after the last deposit of 40 annual deposits of $2,000 per year (first deposit to be made today) given an interest rate of 11.5% p.a.?
Assume that Justin plans to deposit $15,000 into an account exactly 7 years from today. How much will be in my account at the end of year 50 (i.e., 50 years from today), assuming that Justins account pays interest of 10.8% p.a.?
Krammer Bank offers a CD (i.e., certificate of deposit) that pays 2.95% p.a., but with monthly compounding. If Lebron deposits $20,000 into this account today, how much will he have in his account in exactly 28 years?
If the real rate of interest is 1.75% and if the expected inflation rate is 8.65%, what is the present value of $50,000 to be received exactly 8 years from today?
Kiyomi wants to buy a new car. The dealership offers her a choice of paying $600 per month for 5 years (with the first payment due exactly 13 months from today) or paying $27,000.00 today (which Kiyomi will borrow from her bank). What annual interest rate would make Kiyomi indifferent between these two options?
Arjun plans to retire on his 65th birthday. However, he plans to work part-time until he turns 72. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Arjun will fully retire on his 72nd birthday. Assuming that Arjun can earn 7.8% p.a. on all money invested in his retirement account, what annual amount, starting on his 34th birthday, will Arjun have to save in order to have $2,500,000 in his account on his 72nd birthday?
You expect to deposit the following cash flows at the end of years 1 through 5, $1,000; $4,000; $9,000; $5,000; and $2,000 respectively. What is the future account value at the end of year 20 if you can earn 10% p.a., compounded continuously?
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