8. A financial company will pay you $70,000 now in exchange for annual payments of $11000 that you are expected to receive over the next 9 years. If you estimate the time value of money at 7 percent each year, would you accept this offer?

Q: Your business associate who owes you $8000 offers to pay you either $6640 now or else to pay you 5…

A: Yearly installment (A) = $1600 n = 5 years r = 5.8% compounded continuously

Q: How much should be invested each year for 10 years to provide you with $7000 per year for the next…

A: Annuity means no. of payments which are equal in size and made at equal length of intervals. Person…

Q: account

A: Introduction: Investments are made by depositing a certain sum of money in the account. At the end…

Q: What is the future value of $13,000 to be received at the end of each quarter over a period of 10…

A: Quarterly receipts = $13,000Period = 10 yearsInterest rate = 6%

Q: You have $3000 today, and you expect to receive $1000 at the end of the next three years,…

A: Present Value = pv = $3000Payment = p = $1000Time = t = 3Interest Rate = r = 8%

Q: How much would you have at the end of 5 years if you choose to take the $ 6640 offer now, and you…

A: N = 5 years Investment = 6640 Interest rate = 5.8% compounded continuously

Q: Imagine that you have $8,000 to invest for 19 years. How much more interest will you earn if you…

A: Interest is the cost of borrowing or lending money.

Q: A. Assume that you have $7500 to invest. You plan to invest it for 10 years at a rate of 7% per…

A: Future Value = Present Value * (1 + Interest Rate)^Time

Q: If you deposit $6800 today in an account that pays 5.0% per year, compounded quarterly, how much…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: 8. You have just received a windfall from an investment you made in a tri d's business. She will be…

A: The concept of time value of money will be used here.   When cash is received at different points in…

Q: You decide to invest $14.4k today into a security that will make fixed annual payments to you of…

A: The money's present value is its current worth compared to some of its potential future value after…

Q: You need to accumulate $10,000. To do so, you plan to make deposits of $1,500 per year with the…

A: Amount to be accumulated = $10,000Annual deposits = $1,500Interest rate = 7%To find: Number of years…

Q: You will receive $1,000 forever starting from the end of next year. The account pays  10% compounded…

A: The PV of an investment refers to the combined worth of the cash flows of the investment after they…

Q: A shady individual has approached you for a loan. He promises to pay you $500 at the end of five…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: 22) An investment pays you $5,000 at the end of each of the next five years. Your plan is to invest…

A: The amount after 5 years can be computed using the future value formula.

Q: Wells Fargo offers a new savings product: You make the following payments over the next 5 years and…

A: Future value is computed by following formula:-FV = A*(1+r)nwhereFV = future valueA = amount…

Q: ou want to have $1,970,000 at the end of 22 years. You have $6,000 to invest now, and you will…

A: Future value includes the amount of deposits made and the amount of compounding interest accumulated…

Q: Your plan is to have $40,000 in your account, 13 years from today. You can invest in an account that…

A: Future value required (FV) $40,000 Interest rate = 8.05% Monthly interest rate (r) = 8.05%/12 =…

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: You are investigating an investment opportunity. The security requires you to make monthly payments…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: If you want to earn 5% annual simple interest on an investment, how much should you pay for a note…

A: The question is based on the concept of time value.

Q: You are told that if you invest $10,900 per year for 12 years (all payments made at the end of each…

A: Annual Payment = pmt = $10.900Time = nper = 12 YearsFuture Value = fv = $670,000Present Value = pv =…

Q: Suppose you make a one-time $ 8,000 investment into an account that yields a 12% annual return. If…

A: The FV of an investment refers to the total value of its cash flows at a future date assuming that…

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: What is the maximum amount you should pay today for an investment that pays a single future cash…

A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…

Q: An investment will pay you $10,000 in 10 years, and it also will pay you $400 at the end of each of…

A: The amount to be paid for the investment is calculated as the present value of annuity plus the…

Q: You purchase an investment for $1,000. You expect it will increase in value at a rate of 9% per…

A: Initial Investment is $1,000 rate is 9% per yeat time period is 12 years   To Find:- Worth of…

Q: What is the value of today of an investment that will pay $100 per year for 5 years. Assume first…

A: Present value of annuity is the present value of recurring cash flows with regular intervals at a…

Q: You expect to receive $150,000 per year on a contract that will last 5 years. You are trying to…

A: Present value of future cash inflows will be equal to the worth of contract today.   Worth of…

Q: ou are offered an investment that requires you to put up $5,000 today in exchange for $12,000 10…

A: Future value is the compounded value of a sum of money invested for a period of time at a specified…

Q: How much should be invested each year for 10 years to provide you with $8000 per year for the next…

A: Present value includes the value without interest rate and future value includes the value with…

Q: Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: You will deposit $10,000 per year for five years at 9%. Then you will just let themoney sit there…

A: Deposit = 10,000 Interest % =9% Time Period = 5 years   Future Value of Deposits = [Deposit *…