9. You are offered an investment with a quoted annual interest rate of 6.75% with quarterly...
9. You are offered an investment with a quoted annual interest rate of 6.75% with quarterly compounding of interest. What is your effective annual interest rate?
10. You are offered an annuity that will pay $15,000 per year for 20 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 3%, what is the annuity worth to you today?
11. If you deposit $6,500 per year (each deposit is made at the end of the year) in an account that pays an annual interest rate of 8%, what will your account be worth at the end of 25 years?
12. You plan to borrow $277,500 now and repay it in 20 equal annual installments (payments will be made at the end of each year). If the annual interest rate is 5.5%, how much will your annual payments be?
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9. You are offered an investment with a quoted annual interest
rate of 6.75% with quarterly...
Calculate all of the problems in the document below in an Excel spreadsheet or on a...
Calculate all of the problems in the document below in an Excel spreadsheet or on a financial calculator. Please show your work in order to get credit. For each problem, state the inputs given, what you are being asked to find (the missing input), and then use the Finance function to get the correct answer (if using Excel). 1. If you wish to accumulate $100,000 in 5 years, how much must you deposit today in an account that pays an...
11-16 I need help quick 9. You are offered an annuity that will pay $24,000 per...
11-16 I need help quick
9. You are offered an annuity that will pay $24,000 per year for 11 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 13%, what is the annuity worth to you today? AnnPay - 24,000 DR = 13 S 134PMT -24,00 world tried It Yrs 86-59 CK NO 1 FV-O Current value of annuity in 136,486.59 10. If you deposit $16,000 per year for 12...
How much interest is earned in an account by the end of 5 years if $30,000...
How much interest is earned in an account by the end of 5 years if $30,000 is deposited and interest is 4% per year, compounded semi-annually? What is the balance in an account at the end of 10 years if $6,500 is deposited today and the account earns 3% interest compounded annually? If you wish to accumulate $50,000 in 10 years, how much must you deposit today in an account that pays annual interest rate of 8%, with semi-annual compounding...
(20 points) You borrow $3000 for four years at an annual effective interest rate of i....
(20 points) You borrow $3000 for four years at an annual effective interest rate of i. The investor pays interest only on the loan at the end of each year and accumulates the amount necessary to repay the principal at the end of four years by making level payments at the end of each year into a sinking fund (an account used to accumulate money needed to pay back a debt). The sinking fund earns an annual effective interest rate...
-Which one of the following statements concerning interest rates is correct? A. Savers would prefer annual...
-Which one of the following statements concerning interest rates is correct? A. Savers would prefer annual compounding over monthly compounding. B. The effective annual rate decreases as the number of compounding periods per year increases. C. The effective annual rate equals the annual percentage rate when interest is compounded annually. D. Borrowers would prefer monthly compounding over annual compounding. E. For any positive rate of interest, the effective annual rate will always exceed the annual percentage rate. -Nick got a...
You plan to borrow $385,000 now and repay it in 25 equal annual installments (payments will...
You plan to borrow $385,000 now and repay it in 25 equal annual installments (payments will be made at the end of each year). If the annual interest rate is 12%, how much will your annual payments be?
Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 4.2 percent until...
Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 4.2 percent until you retire in 40 years. You believe that interest rates will increase over the next year and you would be offered 4.8 percent per year one year from today. If you plan to deposit $12,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit? Multiple Choice...
3.You borrow $100,000 today, the annual interest rate is 12%, you repay the interest and principle...
3.You borrow $100,000 today, the annual interest rate is 12%, you repay the interest and principle once a year. The loan will be payoff in 30 years. What is your annual payment? 4.Matt plans to make 35 equal yearly deposits into his retirement account starting one vear from now (t-1). Starting at t-36, he will make 20 equal withdrawals of S150,000 each year from this account. The intere must Matt deposit each year to satisfy his retirement needs? 5.Kevin is...
What annual interest rate do you need for an investment to be worth $4,345.47 four years...
What annual interest rate do you need for an investment to be worth $4,345.47 four years in the future with semi-annual compounding if you deposit $3,300 today? Please show ALL work with finance formulas.
Problem 5-38 Annuity Interest Rate (LG5-8) To borrow $1,300, you are offered an add-on interest loan...
Problem 5-38 Annuity Interest Rate (LG5-8) To borrow $1,300, you are offered an add-on interest loan at 6 percent. Three loan payments are to be made, one at four months another at eight months, and the last one at the end of the year. Compute the three equal payments. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Three equal $ 450.78 payments
11-16 I need help quick
9. You are offered an annuity that will pay $24,000 per year for 11 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 13%, what is the annuity worth to you today? AnnPay - 24,000 DR = 13 S 134PMT -24,00 world tried It Yrs 86-59 CK NO 1 FV-O Current value of annuity in 136,486.59 10. If you deposit $16,000 per year for 12...
(20 points) You borrow $3000 for four years at an annual effective interest rate of i. The investor pays interest only on the loan at the end of each year and accumulates the amount necessary to repay the principal at the end of four years by making level payments at the end of each year into a sinking fund (an account used to accumulate money needed to pay back a debt). The sinking fund earns an annual effective interest rate...
Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 4.2 percent until you retire in 40 years. You believe that interest rates will increase over the next year and you would be offered 4.8 percent per year one year from today. If you plan to deposit $12,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit? Multiple Choice...
3.You borrow $100,000 today, the annual interest rate is 12%, you repay the interest and principle once a year. The loan will be payoff in 30 years. What is your annual payment? 4.Matt plans to make 35 equal yearly deposits into his retirement account starting one vear from now (t-1). Starting at t-36, he will make 20 equal withdrawals of S150,000 each year from this account. The intere must Matt deposit each year to satisfy his retirement needs? 5.Kevin is...
Problem 5-38 Annuity Interest Rate (LG5-8) To borrow $1,300, you are offered an add-on interest loan at 6 percent. Three loan payments are to be made, one at four months another at eight months, and the last one at the end of the year. Compute the three equal payments. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Three equal $ 450.78 payments
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