1. Kendra receives $900 now, $970 in 1 year, $1,040 in 2 years, and so on,...
No excel solutions please. Thank you ) Consider a perpetuity, which make payments twice a year. The first-year payments are 5 at time 0.5 years and 5 at time 1, next year they are 10 at time 1.5 years and 10 at time 2, in the third year the payments are 15 at time 2.5 years and 15 at time 3, and so on. The annual interest rate is 8% nominal convertible semiannually. Find the present value of this perpetuity...
1. Jon invests $300 at time 8 years, $600 at time 9 years, $900 at time 10 years, and so on, up to the last payment at time 20 years. What is the accumulated value of these payments at time 25 years using an annual effective interest rate of 5%? A. $33,591.79 B. $42,872.58 C. $ 45,016.21 D.$ 46,090.56 None of the above E.
Find the accumulated value 32 years after the first payment is made of an annuity on which there are 6 payments of $970 each made at 4-year intervals. The nominal rate of interest convertible semiannually is 4.1%.
You took out a student loan in college and now have to pay $1,600 every year for 10 years, starting one year from now. The annual interest rate on the loan is 4%. Attempt 1/5 for 10 pts. Part 1 What is the present value of the 10 yearly payments?
Please answer with mathematical formulas, not an excel sheet please 3. John borrows an amount at an annual interest rate of 8%. He repays all interest and principal in a lump sum at the end of ten years John uses the amount borrowed to purchase a 5-year bond with a par value of 1000 with coupons at a nominal rate of 10% payable semiannually, with the first coupon paid at the end of 6-month period from now. The bond is...
Math Interest Theory/ Financial Math Please Use Formulas 1. (4pts) Find the present value, 2 years before the first payment is made, of an inheritance of twenty-year annuity, on which payments are $100 at the beginning of each quarterly year, assuming a nominal rate of interest of 6% convertible monthly, by (1) finding the equivalent interest rate convertible at the same frequency as payments. (2) using the formula ("Fission" method). (Answer: $4,169.15)
Assume a 10% annual interest rate. (i) What is the present value of a 25 year, $900 annuity if the first payment does not occur until 7 years from today? (ii) What would be the present value of a perpetuity with the same characteristics ($900, first payment in 7 six years).
Find the amount of the payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. $85,000; money earns 4% compounded semiannually years The payment size is $ . (Do not round until the final answer. Then round to the nearest cent.)
Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $9411.44 at 3.3% compounded annually for 4 years The present value is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $5600 at 4% compounded quarterly for...
A debt of $6000 due four years from now and $6000 due nine years from now is to be repaid by a payment of $2100 in one year, a payment of $4200 in three years, and a final payment at the end of five years. If the interest rate is 2.1% compounded annually, how much is the final payment? The final payment should be $1 (Do not round until the final answer. Then round to the nearest cent as needed.)