Please answer the following questions and show work. Thank you!
4. Monthly interest rate = 0.05/12 = 0.004166666667
A loan of $5,000 amortized over 36 months at 12%
r = 12%/12 = 0.01 monthly rate
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Please answer the following questions and show work. Thank you! Present Value of Annuity; Amortization Find...
Mrs. Hart, at age 65, can expect to live for 25 years. If she can invest at 10% per annum compounded monthly, how much does she need now to guarantee herself $1000 every month for the next 25 years?
Mary age 65 expects to live for 20 years. If she can invest at 4% per annum compounded monthly, how much does she need now to guarantee herself $300 every month for the next 25 years?
Find the present value of annuity if a) the withdrawal is to be $500 per month for 36 months at 4% compounded monthly b) $1000 per year for 3 years at 3% compounded annually.
find the present value of the given annuity. $ 533 per month for 36 months at the rate of 3.9 % compounded monthly
14. What is the interest rate of a 4-year, annual $1,000 annuity with present value of $3,500? A. 3.85 percent B. 5.56 percent C. 8.84 percent D. 9.70 percent 15. You wish to buy a $15,000 car. The dealer offers you a 4-year loan with a 9 percent APR What are the monthly payments? A. $260.78 B. $312.50 C. $373.28 D. $3,820.56 16. You are planning to make monthly deposits of $330 into a retirement account that pays 8 percent...
3. Find the present value of an annuity-due with payments of $1,800 every 6 months for 8 years at a nominal rate of interest of 5% per annum compounded semian- nually. Answer: $24,086.48
SIMPLE ANNUITY Instruction: Solve the given situations. Show your solutions (5 points each). 1. Find the present value of an ordinary annuity with cash flows of $775.00 paid annually for 10 years at the interest rate of 1.40% per year, provided the interest is compounded annually. 2. Jon borrowed $46,000.00 to finance their college education. Jon has to make payments at the end of each quarter over the next 17 years in order to pay off this debt. How much...
5) a) What is the present value of $40 earned 2-years from now if compounding was semi-annual and the interest rate is annually 3%? A "black box" just paid $20, which is expected to grow by 3% when the interest rate is 7% forever, what is the present value of this "black box" b) What is the future value of an annuity due with a $15 cash flow, 4% annual interest with quarterly compounding three-years from now? c) d) If...
18. What is the interest rate of a 6-year, monthly $625 annuity due with a present value of $37,654? 19. After saving diligently her entire career, Terrence is ready to retire with a nest egg of $672,500. She needs to invest this money in a mix of stocks and bonds that will allow her to withdraw $5,850 per month for 20 years. What annual interest rate (APR) does she need to earn? 20. Bradley borrowed $72,500 in student loans and...
find the present value
Find the present value PV of the annuity account necessary to fund the withdrawal given. Hint [See Quick Example 3.] (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $800 per month for 20 years, if the account earns 2% per year and if there is to be $10,000 left in the annuity at the end of the 20 years PV = $