Question

Year End-of-Year Payment 1 $1400 2 $1320 3 $1240 4 $1190 5 $1000 What future sum,...

Year

End-of-Year Payment

1

$1400

2

$1320

3

$1240

4

$1190

5

$1000

What future sum, at time 5, is equivalent to the series of payments in the table, at a 10% interest rate?

Select one:

a. $7616

b. $7660

c. $7212

d. $5995

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following series of payments will repay a present sum of $5000 at an 8% interest...
The following series of payments will repay a present sum of $5000 at an 8% interest rate. Use single payment factors to find the present sum that is equivalent to this series of payments at a 15% interest rate. Year End of year Payment 1 $1400 2 1320 3 1240 4 1160 5 1080
What will be the future value? (1). A lump-sum of $3000 now, in 5 years at...
What will be the future value? (1). A lump-sum of $3000 now, in 5 years at 7% compounded annually. (2). Series of payment: $3000 at the end of each year for 5 years at 7% compounded annually. (3). $1000 at the end of the first year, then increase at a rate of $100 for the following 4 years. The interest rate of 7% compounded annually. (4). $1000 at the end of the first year, then increase by 10% for the...
A 10-year annuity has annual payments of $1,000. The first payment is in 1 year. If...
A 10-year annuity has annual payments of $1,000. The first payment is in 1 year. If interest is 5%p.a (effective annual rate) for the first 3 years followed by 6%p.a (effective annual rate) for 7 years, what is the future value of this annuity at the end of 10 years? Select one: a. $13,134.03 b. $13,001.45 c. $12,002.34 d. $13,969.78
A lump sum payment of $1,000 is due at the end of 5 years. The nominal...
A lump sum payment of $1,000 is due at the end of 5 years. The nominal interest rate is 10%, semiannual compounding. Which of the following statements is/are INCORRECT? Why? a.    The present value of the $1,000 would be greater if interest were compounded monthly rather than semiannually. b.    The periodic rate is greater than 5%. c.    The periodic interest rate is 5%. d.    The present value would greater if the lump sum were discounted back for more periods. e.   ...
What is the future value at the end of year 5 of a series of 3...
What is the future value at the end of year 5 of a series of 3 deposits? The first deposit occurs at the end of year 3 and is $800. The remaining deposits increase by $150/year (so the last deposit will be $1100 and will occur at the end of year 5) . Assume i = 7.4% compounded annually.
4. The following table shows the price of $1000 face value 1-year, 2-year, 3-year, 9-year and...
4. The following table shows the price of $1000 face value 1-year, 2-year, 3-year, 9-year and 10-year US Treasury zero coupon bonds as of March 2018. Use pure expectations hypothesis to determine: a. the interest rate for the 1-year bond. b. the expected interest rate on a 1-year bond one year from now, in year 2? b. the expected interest rate on a 1-year bond two years from now, in year 3? c. the expected interest rate on a 1-year...
Loan payment Determine the equal, end-of-year payment required each year over the life of the loans...
Loan payment Determine the equal, end-of-year payment required each year over the life of the loans shown in the following table to repay them fully during the stated term of the loan. Loan    Principal    Interest rate    Term of loan (years) A    $12,000       8%       3 B       60,000    12     10 C       75,000    10     30 D         4,000    15        5
What amount comes closest to the future value, at the end of year 20, of a...
What amount comes closest to the future value, at the end of year 20, of a 15 year annuity of $550 that makes its first payment at the end of year 6? Use an interest rate of 5%. a. $ 12,802 b. $ 11,031 c. $ 13,821 d. $ 10,229 e. $ 11,868
1. Which of the following investments would have the highest future value at the end of...
1. Which of the following investments would have the highest future value at the end of 10 years? Which has the highest present value today? Rank the choices below from highest to lowest present value. Assume that the effective annual interest rate for all investments is the same and is greater than zero. (interest rate 5%) Please write calculation and steps. Investment A pays $250,000 at the beginning of every year for the next 10 years (a total of 10...
In excel solve the following: 1.)What is the Future Value of an annual payment of 300,...
In excel solve the following: 1.)What is the Future Value of an annual payment of 300, for 5 years, with a rate of 3%: 2.) In what time, if I deposit B / .1000.00 are equivalent to B / .8,000.00, with 20% interest 3.)How much money would I have to deposit today, so that in 10 years I can withdraw B / .5,000.00, the bank pays me 2.5% interest.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT