Jimmy deposits $3,200 now, $2,700 3 years from now, and $5,600 6 years from now. Interest...
Jimmy deposits $3,200 now, $2,700 3 years from now, and $5,600 6 years from now. Interest is 5% for the first 3 years and 6% for the last 3 years.
a) How much money will be in the fund at the end of 6 years?
b) What is the present worth of the fund?
c) What is the uniform series equivalent of the fund (uniform cash flow at end of years 1–6)?
Homework Answers
a.
Future Value = 3,200(1.05)3(1.06)3 + 2,700(1.06)3 + 5,600
Future Value = $13,227.74
b.
Present Value = 13,227.74/(1.05)3(1.06)3
Present Value = $9,594.01
Add Answer to:
Jimmy deposits $3,200 now, $2,700 3 years from now, and $5,600 6
years from now. Interest...
Jimmy deposits $ 3,400 now, $ 2,900 3 years from now, and $ 6,000 6 years...
Jimmy deposits $ 3,400 now, $ 2,900 3 years from now, and $ 6,000 6 years from now. Interest is 6 % for the first 3 years and 4 % for the last 3 years. a. How much money will be in the fund at the end of 6 years? b. What is the present worth of the fund? c. What is the uniform series equivalent of the fund (uniform cash flow at end of years 1–6)?
b. If the company makes the first deposit one year from now, how much should each...
b. If the company makes the first deposit one year from now, how much should each deposit be? 3. A start-up internet service provider expects to lose money in each of the first four years. Losses are projected to be $50 million in year one, $40 million in year two, $30 million in year three and $20 million in year four. An interest rate of 10% per year is used. a. What is the present worth of the losses for...
4) If a person deposits $2000 in to an account paying 6% compounded annually one year...
4) If a person deposits $2000 in to an account paying 6% compounded annually one year from now and then increases his deposits by 100$ each year for the next eight years, determine the amount of money that will be in the account at the end of eight years. 5) What is the equivalent present amount of a fifteen year period series of decreasing amounts if the interest rate is 12% compounded annually the first year amount is $35000 and...
2 pts Question 2 Vhat is the future value, five years from now, of $60 monthly...
2 pts Question 2 Vhat is the future value, five years from now, of $60 monthly payments using an interest rate of 0.5% compounded monthly? 300.38 Question 3 2 pts What uniform series of cash flows is equivalent to a $100,000 cash flow 30 years from now, if the uniform cash flows occur at the end of the year for the next 30 years and the periodic interest rate is 12% compounded annually? 414.37
-27 How much invested now at an interest rate of 9% compounded annually would be just...
-27 How much invested now at an interest rate of 9% compounded annually would be just sufficient to provide three payments as follows: the first payment in the amount of $3,000 occurring two years from now, the second payment in the amount of $4,000 five years thereafter, and the third payment in the amount of $5,000 seven years thereafter? 62.34 What is the future worth of a series of equal yearly deposits of $5,000 for 7 years in a savings...
How much will Tamara have in 10 years from now if she deposits the $9,868 that...
How much will Tamara have in 10 years from now if she deposits the $9,868 that her grandfather gave her at 2.1 % interest rate, compounded annually? Round your answer to 2 decimal places and do not enter any symbols such as S, % or commas. Match the correct terms for the given definitions below. A sum received today is worth more than that same sum received some time in the future. A. Compound interest B. Simple interest C. Time...
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in...
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points) Pg=. 2 - 8v. Sop VVVV. 72 70 Now $s < 4. The equivalent present worth of a geometric gradient series of cash flows for 10 years was found to be $19,776. If the interest rate was 15% per year and the...
Charlie Stone wants to retire in 30 years, and he wants to have an annuity of...
Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1,000 a year for 20 years after retirement Charlie wants to receive the first annuity payment at the end of the 30th year. Using an interest rate of 10%, how much must Charlie invest today in order to have his retirement annuity (round to the nearest S10) A cash flow series is increasing geometrically at a rate of 6% per year. The initial cash...
help Por Jou pie M ICELIUI SCVCIl years. Which option is better? Interest effective and Interest...
help
Por Jou pie M ICELIUI SCVCIl years. Which option is better? Interest effective and Interest compounded 5. Suppose your savings account pays 9% interest compounded quarterly. If you deposit $25,000 for one year, how much would you have? 6. If your credit card calculates the interest based on 12.5% APR, what is your monthly interest rate and annual effective interest rate, respectively? ut, pelivery The Concept of Equivalence 7. Suppose that, to purchase a car, you are obtaining a...
What is an annuity? Select one: a. present worth of a series of equal payments. b....
What is an annuity? Select one: a. present worth of a series of equal payments. b. a single payment. c. a series of payments that changes by a constant amount from one period to the next. d. a series of equal payments over a sequence of equal periods. e. a series of payments that changes by the same proportion from one period to the next. Question 2 The present worth factor Select one: a. gives the future value equivalent to...
b. If the company makes the first deposit one year from now, how much should each deposit be? 3. A start-up internet service provider expects to lose money in each of the first four years. Losses are projected to be $50 million in year one, $40 million in year two, $30 million in year three and $20 million in year four. An interest rate of 10% per year is used. a. What is the present worth of the losses for...
2 pts Question 2 Vhat is the future value, five years from now, of $60 monthly payments using an interest rate of 0.5% compounded monthly? 300.38 Question 3 2 pts What uniform series of cash flows is equivalent to a $100,000 cash flow 30 years from now, if the uniform cash flows occur at the end of the year for the next 30 years and the periodic interest rate is 12% compounded annually? 414.37
-27 How much invested now at an interest rate of 9% compounded annually would be just sufficient to provide three payments as follows: the first payment in the amount of $3,000 occurring two years from now, the second payment in the amount of $4,000 five years thereafter, and the third payment in the amount of $5,000 seven years thereafter? 62.34 What is the future worth of a series of equal yearly deposits of $5,000 for 7 years in a savings...
How much will Tamara have in 10 years from now if she deposits the $9,868 that her grandfather gave her at 2.1 % interest rate, compounded annually? Round your answer to 2 decimal places and do not enter any symbols such as S, % or commas. Match the correct terms for the given definitions below. A sum received today is worth more than that same sum received some time in the future. A. Compound interest B. Simple interest C. Time...
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points) Pg=. 2 - 8v. Sop VVVV. 72 70 Now $s < 4. The equivalent present worth of a geometric gradient series of cash flows for 10 years was found to be $19,776. If the interest rate was 15% per year and the...
Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1,000 a year for 20 years after retirement Charlie wants to receive the first annuity payment at the end of the 30th year. Using an interest rate of 10%, how much must Charlie invest today in order to have his retirement annuity (round to the nearest S10) A cash flow series is increasing geometrically at a rate of 6% per year. The initial cash...
help
Por Jou pie M ICELIUI SCVCIl years. Which option is better? Interest effective and Interest compounded 5. Suppose your savings account pays 9% interest compounded quarterly. If you deposit $25,000 for one year, how much would you have? 6. If your credit card calculates the interest based on 12.5% APR, what is your monthly interest rate and annual effective interest rate, respectively? ut, pelivery The Concept of Equivalence 7. Suppose that, to purchase a car, you are obtaining a...
Most questions answered within 3 hours.
-
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 1 hour ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 1 hour ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 1 hour ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 1 hour ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 1 hour ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 1 hour ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 1 hour ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 2 hours ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 1 hour ago -
1. Describe the four main green solvents. Provide one example of
the use of each solvent....
asked 2 hours ago -
International ethics focus on:
1) exploitation of labor
2)corruption
3) environmental impact
4) none of the...
asked 2 hours ago -
Costing Models You work for XYZ trucking and your boss has asked
you to figure out...
asked 2 hours ago