Present value=$12000*Present value of discounting factor(rate%,time period)
=12000/1.07^4
=12000*0.7629
=$9154.80
Determine the amount you must deposit today in your SUPER savings account, paying 7% interest, in...
Determine the amount you must deposit today in your SUPER savings account, paying 10% interest, in order to accumlate $7,500 for a down payment 3 years from now on a new car.
Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net annual cash flows of $30,000 each year for the next 7 years. The machine has a salvage value of $10,000 at the end of its 7 year useful life. Johnson's cost of capital and discount rate is 8%. What is the dollar amount that we would multiply the factor by when using the PV of an Annuity table? $30,000 $80,000 o oo $10,000 $210,000...
Assume that you deposit $10,000 today into an account paying 6% annual interest and leave it on deposit for exactly 8 years. a. How much will be in the account at the end of 8 years in interest is compounded: 1. annually? 2. semiannually? 3. monthly? 4. continuously? b. Calculate the effective annual rate (EAR) for a (1) through a (4) above. c. Based on your findings in parts a and b, what is the general...
You deposit $3,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 1 2% nominal interest compounded month y Five years after ur de o the savings account aga changes it interest rate this time e interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate...
You plan to deposit $5,607 into a savings account paying 6% interest compounded quarterly. How much will be in your account - assuming no withdrawals-after three years? $6,704 $4,187 $5,970 $7,563
You just made a one-time deposit (today) of $7,500 into an account paying an interest rate of 12 percent per year. Required: How long will it be before you have enough in the account to buy a $28,000 car? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Suppose you want to deposit a certain amount of money into a savings account and then leave it alone to draw interest for the next 10 years. At the end of 10 years you would like to have $10,000 in the account. How much do you need to deposit today make that happen? You can use the following formula, which is known as the present value formula, to find out: P = F / (1+ r)^n The terms in...
Suppose you deposit 4859 today in a savings account that earns an annual interest rate of 4.53% which is compounded annually. Assuming no withdrawals, how much would you have at the end of 8 years?
1)You plan to deposit $100 in a savings account at the end of each month for the next 10 years. How much will you have in 10 years, assuming a 2% annual interest rate. 2)You wish to purchase a car that costs $22,000 today. You will put $2,000 down and borrow the remaining $20,000. The interest will be 2.00% and you will make monthly payments (end of month) over 5 years. What will your monthly payment be? I need help...
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next year. Then you wait two more years (until 4 years from now) and deposit $1,000. If your account always earns 6% annual interest and you make no withdrawals, how much will be in the account 11 years from now? 9-You deposit $5000 for 5 years at 4% annual interest. In 5 years, you add $15,000 to your account, but the rate on your account...