d) You expect to make 12 semi-annual payments of $ 5,000 each at the rate of return of 5% capitalized monthly for the first 2 years and at the effective rate of return of 6% thereafter. The first payment is expected in 6 months. Calculate the accumulated value of your payments after 6 years.

Q: $5000 that you have to pay in 7 annual installments of $1100 each, the first one at the end of the…

A: The given problem relates to RATE function in excel. RATE function computes interest rate for no. of…

Q: You have discovered an investment opportunity that earns a 3% rate of interest compounded…

A: Present value is the equivalent value of future money today that is going to be received in the…

Q: You are taking a $2000 loan. You will pay it back in four equal amounts, paid every six months…

A: The loan is repaying in four equal amounts semi annually starting in 3 years from now. Therefore the…

Q: You make two annual payments of $2,000 each (the first payment is made one year from today) into a…

A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%

Q: If you deposit $50,000 in an account that pays an annual interest rate of 10% compounded monthly,…

A: The objective of this question is to calculate the future value of an investment given the initial…

Q: You place $4000 into an account paying 8% compounded annually. Inflation is 2.5% during each of the…

A: The real rate of return is the actual rate of return after taking inflation into account. The…

Q: Suppose you wish to purchase heavy equipment machinery and a commercial bank will lend you $65,000…

A: Amount lent = $65,000 Loan period = 5 years* 12 = 60 Nominal interest rate = 8%/12 = 0.6667%

Q: You are set to receive an annual payment of $10,900 per year for the next 15 years. Assume the…

A: First we need to use future value of ordinary annuity( payment due at end of period) formula to…

Q: Suppose that 15 monthly payments of 100 each are followed by 10 monthly payments of 150 each. The…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: You borrow $5000 at 10% per year and will pay off the loan in 3 equal annual payments starting one…

A: Calculation of Payment at the end of Year 2:The interest payment is $348.94 and principal payment is…

Q: You deposit $700 at the end of each month into an account earning interest at an annual rate of r…

A: Future value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: how much money will be in the account? How much of it is interest?

A: Annuity payments are the fixed periodic payments that an investor or depositor makes into an…

Q: What is the value today of receiving six annual payments of $400,000, beginning one year from now,…

A: Using the scientific calculator, we can calculate the NPV of the cash flows.  Enter the value as…

Q: If you deposit $700 every year for the next 5 years, with first deposit to be made today and all…

A: Amount deposit per year = $700 Time period = 5 Years Interest Rate = 3.76%

Q: You want to be able to withdraw $8500 from an account at the end of each 6-month period (that is,…

A: Given that;Periodic withdrawal amount is $8500Interest rate is 2.9% per year

Q: Suppose you graduate with a debt of $42,000 that you or someone must repay. One option is to pay off…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: You are set to receive an annual payment of $11,200 per year for the next 18 years. Assume the…

A: Given the following: Annual payment, A = $11,200  Period, n = 18 years  Interest rate, r = 6.1%

Q: What are the annual payments for years 1 to 30? What is remaining balance at the end of each year?…

A: Information Provided: Loan amount = $120,000 Year of loan = 30 years Interest rate = 10%

Q: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6.…

A: Answer: Calculation of the amount that will be available to withdraw at the end of year 15: The…

Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…

A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…

Q: Find the present values of these annuities due. a. What is the present value of $4,000 per month…

A: PMT=$4000 per monthNumber of payments=n=12Interest rate=4.8%Monthly interest rate=r=4.8/12=0.4%Find…

Q: You will receive a series of $1, 224 payments, annually, beginning exactly 8 years from today, for a…

A: Present Value is the current price of future value which will be received in near future at some…

Q: if $204 is deposited in a savings account at the beginning of each year for 12 years and the account…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: How much money must be deposited at the end of each quarter if the objective is to accumulate…

A: Working note:

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: Using excel FV function

Q: Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest…

A: Future value can be determined by compounding the present value.

Q: Suppose that you have good credit and can get a 30-year mortage for $100,000 at 5%. What is your…

A: A mortgage is a loan made usually for a property in which the collateral is the property itself.

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: The amount at the end of a specific number of years will be the future value of the initial deposit.

Q: You deposit $14,000 at a 8% interest rate for 9 years compounded quarterly.  What is the future…

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Q: find the present value of a stream of payments that begin in year one at $3000 and increase by 10%…

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Q: For 10 years with total payments of $ 10000 per year, calculate the total amount accumulated after…

A: Total payment per year = $10,000 = P Time period = 10 years = n  Annual interest rate = 20% = R…

Q: You take out a $7,000 car loan that calls for 60 monthly payments starting after 1 month at an APR…

A: The present value of annuity refers to the current value of regular payments made at fixed intervals…

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A: An amortization schedule is a table or chart that outlines the specific details of a loan over time.…

Q: 2) You set up a 45-year investment plan with the intention of amassing 1,500,000 at the end of the…

A: Investment planning is the process of determining where you are financially in terms of the future…

Q: You deposit $4000 in an account that pays 6% interest compounded semiannually. After 3 years, the…

A: Compound interest is interest computed on both the initial principal amount and any accrued interest…

Q: it is desired to save $20,000 by depositing $800 every 3 months in an investment that pays 8%…

A: Annuity means a set of finite number of payments which are the same in size and made in equal…