11. You deposit $1,000 today, $3,000 two years from now, and $5,000 five years from now. How much money will you have at the end of year 5 if the annual compound interest rates for each year are predicted to be different and shown in the table below? Year 1. 2 3 4 5 Interest rate 5% 10% 15% 15% 20%

Q: Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the…

A: a. Having $200 today is equivalent to having 650 × 1.036 = $673.4 in one year. future value =…

Q: F4. You deposit $10,282 at the end of each year for the next 18 years. Your deposits earn 10…

A: The Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: Interest rates are 10%. Suppose you deposit the PV (present value) of a 7 year, $5000 annuity in the…

A: An annuity is a cash flow that occurs in each period and the amount is fixed or constant.   In this…

Q: How much will a $100 deposit made today be worth in 10 years if interest is compounded quarterly at…

A: Future value of the deposit includes the amount being deposited and amount of interest accumulated…

Q: You invest $9,000 today at an annual interest rate of 5%. How much do you expect to have 5 years…

A: P = $9,000r = 5% = 0.05n = 5

Q: Comprehensive problem) You would like to have $52.000 in 16 years To accumulate this amount, you…

A: The FV of an investment refers to the combined value of its cash flows at a predetermined future…

Q: 5. Calculate the difference between the future values of $12,000 payable in 6 years at 5% simple and…

A: Note:Since you have posted multiple questions, we have solved first question for you. Kindly repost…

Q: 4. If an investor deposits $20,000 now, $10,000 two years from now and $5,000 per year for three…

A: The perpetual withdrawal beginning 12 years from now will depend upon the value of the investment at…

Q: What interest rate must your bank offer if you want your $2,730 invested today to grow to $3,470 in…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

Q: What APR is being earned on a deposit of $5,000 made 10 years ago today if the deposit is worth…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: 7. If you deposit $5,000 at the end of each of the next 20 years into an account paying 10.8 percent…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Assume you invest $15,000 today. How much will you have in five years at an interest rate of​ 10%?…

A: Future value is computed as: FV=PV1+rnwhere, FV =Future valuePV =Present valuer= rate of interestn=…

Q: $7,763     You found out that now you are going to receive payments of $7,000 for the next 14 years.…

A: Present value of annuities will includes the amount that is equivalent today based on the interest…

Q: Assume you invest $19,000 today. How much will you have in six years at an interest rate of​ 9%?…

A: Formula to compute the Future value is as follows: FV=PV(1+r)n where, FV=Future valuePV =Present…

Q: Suppose an interest rate of 4% a) having $200 today is equivalent to having what amount in one year?…

A: (a) Interest  = 4% Present value =$200 Time = 1 year So, Amount at the end of one year =  Future…

Q: 4. Suppose our savings account ($937.33) pays us compound interest with monthly compounding.…

A: Compounding is related to earning interest on interest. The compounding interest is more beneficial…

Q: A deposit of $100,000 is placed in an account that pays 7.6% interest per year compounded quarterly.…

A: given, pv = $100,000 r = 7.6% m = 4 n = 15 inf = 3.6%

Q: If Carla Rice puts $200 in the bank for nine years and the money compounds at 8% annually how much…

A: The future worth of the amount invested today will be found by using the future value interest rate…

Q: Suppose you invest $210,000 in an annuity that returns constant annual payments over 6 years, with…

A: We will apply the concept of time value of money in this case.In an annuity you make an initial…

Q: Suppose that you will receive annual payments of $10,000 for a period of 10 years. The first payment…

A: Given: Annual payments = $10,000 Interest rate = 6% Period = 10 years

Q: At 8 percent interest rate per year (annual interest payment), how many years does it take to…

A: Answer: Calculation of the time it will take to quadruple the money: Formula, we will use here:…

Q: 29. You invested $10,000 at the end of each year for 20 years at a compound interest rate of 5%…

A: Future value of money is the amount of deposit made and amount of interest accumulated over the…

Q: calculate how much you would have in a savings account 5 $1,000 today, given that the interest paid…

A: Future value is the amount that was deposited and amount of interest accumulated over the period of…

Q: You found out that now you are going to receive payments of $9,000 for the next 11 years. You will…

A: Annual Payments = $9,000 Time period = 11 years Annual interest rate = 11%

Q: You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The…

A: present value in savings account = $100 interest rate annually = 2% future value = $120 time period…

Q: At the end of each of the next 5 years, you will deposit the following amount into your savings…

A: Compounding the present value provides future value

Q: 6.​If the current value of $1000 received five years from now is $680.50, what is the ​assumed…

A: Annual interest rate refers to the rate that is being charged by the lender by the borrower on the…

Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…

A: Based on the given information, The semi-annual interest rate = 6% Time period = 20 Amount = $500 We…

Q: 4. The interest rate on a savingsaccount is 3% . You deposit£100 today, then £100 at theend of the…

A: The objective of the question is to find the value of x that will empty the account after the final…

Q: How much money would be accumulated in year 10 if you deposit 1000 in years, 0, 2, 4, 6, 8,  and 10…

A: Simple interest is one of the oldest and simplest forms of calculating interest. Under this method,…

Q: Calculate the future value of $9,000 invested (single amount) for ten years in an account with an…

A: Information Provided: Present amount = $9000 APR = 6.3% Period of investment = 10 years   NOTE:…

Q: (Comprehensive problem) You would like to have $54,000 in 16 years. To accumulate this amount, you…

A: Future value = $54,000Period = 16 yearsInterest rate = 6% per annum

Q: How much do you have to deposit today so that beginning 11 years from now you can withdraw ​$12,000…

A: Given, Amount that can be withdrawn from years 11 to 16 is $12000 Additional amount at end of 16 th…

Q: Suppose you need to accumulate GHȼ100,000 in 10 years. You plan to make a deposit in a bank now, at…

A: The first step is the calculation of the real rate of return. The nominal rate of return is 6.00%…

Q: What is the value of the payments today?

A: We can determine the PV of the payments using the formula below:In the formula above PMT = annual…

Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…

A: Semiannual interest rate (r) = 0.06 (i.e. 0.12 / 2) Number of deposits (n) = 20 Semiannual period…

Q: You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate…

A: The correct option is  e. 18050

Q: How much will a $100 deposit made today be worth in 10 years if interest is compounded daily at an…

A: Time Value of Money states that a dollar today is worth more than sometime in the future. This is…

Q: Use the following 10% present value factors: N 1: 0.9091 N = 2: 0.8264 N= 3: 0.7513 Assume you wish…

A: The amount you would need to deposit today in order to receive $1,000 is $826.40Explanation:We can…

Q: .A series of equal cash $200 that is deposited at the end of each month will last for 10 years. How…

A: Monthly deposit (M) = $200 n = 10 years = 120 payments r = 9% per annum = 0.75% per month

Q: Present value of amounts due   Assume that you are going to receive $ 50,000 in 10 years. The…

A: Present value is a concept in the time value of money that states that cash flows in the future are…

Q: 8. Suppose that you want to take a five-year loan of $80,000. The interest rate is 9% per year, and…

A: Loan Installment is that amount which is paid by the borrower to lendor till the time of repayment…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.