Question

1. You have a sub-contracting job with a local manufacturing
firm. You receive end-of-year payments of $30,000/year for next 15
years. You deposit all that money in a bank that pays interest at
9.5%.

(a) What will be your balance at the end of 15 years?

Answer #1

1. Suppose you receive $100 at the end of each year for the next
three years. a. If the interest rate is 8%, what is the present
value of these cash flows? (Answer: $257) b. What is the future
value in three years of the present value you computed in (a)?
(Answer: $324.61) c. Suppose you deposit the cash flows in a bank
account that pays 8% interest per year. What is the balance in the
account at the end...

Suppose you receive $1,250 at the end of each year for
the next four years. a. If the interest rate is 10%, what is the
present value of these cash flows? b. What is the future value in
three years of the present value you computed in (a)? c. Suppose
you deposit the cash flows in a bank account that pays 10% interest
per year. What is the balance in the account at the end of each of
the next...

Suppose you receive ?$130 at the end of each year for the next
three years.
a. If the interest rate is 7%?, what is the
present value of these cash? flows?
b. What is the future value in three years of
the present value you computed in ?(a?)?
c. Suppose you deposit the cash flows in a bank
account that pays 7 % interest per year. What is the balance in the
account at the end of each of the...

1-You have won $1,000,000 playing McDonaldâ€™s monopoly. To
receive your prize you have two choices. First, you may receive
$50,000 at the end of each year for the next 20 years. Second, you
may receive a lump sum payment of $750,000. Assuming the lump sum
payment reflects fair market value, what does this imply about
current interest rates?
Select one:
a. Current interest rates are 6.514%
b. Current interest rates are 7.976%
c. Current interest rates are 7.441%
d. Current...

Suppose you deposit $20,000 into a saving account at your local
bank. If the bank pays an average interest rate of 5% annually, how
much money will you have in your saving account in 15 years?
Suppose, your bank talks you into opening a saving account with
them. The bank promises that if you put $10,000 in the saving
account today, you will receive $20,000 10 years from now. What is
the average interest rate that the bank will pay...

Your goal is to have $20,000 in your bank account by the end
of five years. If the interest rate remains constant at 7% and you
want to make annual identical deposits, how much will you need to
deposit in your account at the end of each year to reach your goal?
(Note: Round your answer for PMT to two decimal places.)
$3,825.62
$3,477.84
$3,130.06
$2,434.49
If your deposits were made at the beginning of each year
rather than an...

ou have received a job offer upon graduation from a prestigious
consulting firm. Before you receive your first paycheck, you have
decided to purchase a $97,400 Porsche. The Worst National Bank of
Fowlerville is willing to give you a 5-year loan with monthly
payments, but they require a 10% down payment. The annual interest
rate of the loan is 12%. Assuming you will make the required down
payment, how much will your monthly payments be?
Multiple Choice
$1,949.95
$2,166.61
$2,257.31...

You want to deposit an equal amount of money every year at the
end of each of the next 30 years into an account that pays 6.5%
annually compounded interest, in order to be able to retire
comfortably. During your retirement years, you want to have the
ability to withdraw at the end of each of the 15 years, the amount
of $32,000. During your retirement years, you will keep your money
in an account that earns 3% annually compounded...

You want to deposit an equal amount of money every year at the
end of each of the next 30 years into an account that pays 7.5%
annually compounded interest, in order to be able to retire
comfortably. During your retirement years, you want to have the
ability to withdraw at the end of each of the 15 years, the amount
of $32,000. During your retirement years, you will keep your money
in an account that earns 3% annually compounded...

You want to deposit an equal amount of money every year at the
end of each of the next 30 years into an account that pays 7.5%
annually compounded interest, in order to be able to retire
comfortably. During your retirement years, you want to have the
ability to withdraw at the end of each of the 15 years, the amount
of $32,000. During your retirement years, you will keep your money
in an account that earns 3% annually compounded...

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