How much money be invested today in order to withdraw P1500 per year at the end of each year for 8 years at an interest rate of 8%? O P8,620 O P8,260 O P8,206 P8,602
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- How much do you have to deposit today so that beginning 11 years from now you can withdraw $12,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $24,000 in the last year (period 16)? Assume an interest rate of 9 percent.Economics You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate of 5% one year and 7% other year. How much money will you have at the end of year thirty if there are different interest rates after year 30 as shown in the diagram below? 1 2 3 26 27 28 29 30 5% 7% 5% 7% 5% 7% 5% %7 F? 2000 1000 2000 1000 1000 2000 1000 2000 1000 Select one: O a. 117724 O b. 90000 O c. 120408 O d. 106141 O e. 18050Use the following 10% present value factors: N 1: 0.9091 N = 2: 0.8264 N= 3: 0.7513 Assume you wish to receive $1,000 at the end of two years. Assuming an interest rate of 10% what amount would you need to deposit todayin order to receive the S1, 000? Round to the nearest penny if necessary.
- 8. Suppose that you want to take a five-year loan of $80,000. The interest rate is 9% per year, and the loan calls for equal annual payments. How much do you need to pay each year? A. $17,120.1 B. $19,169.4 C. $20,567.4 D. $21,333.18. It is desired to have P100,000 two years from now by depositing P20,000 now and 10 uniform monthly amounts, the first of which to be made one year from now. What would that monthly amount be if interest rate is 12% pa compounded monthly? Select the correct response.: O P6,990.42 O P 9,277.10 O . P7,060.33 O P 6,921.214. If you deposit $1000 in one year, $2000 in two years, and $3000 in three years, how much will you have in three years? Assume a 7 percent annum interest rate. NPV FV
- If $43,000 is invested now, which of the following value is closest to the equivalent future dollars 6 years from now to earn a real interest rate of 3% per year when the inflation rate is 6% per year? Select one: а. 51,344 b. 72,833 c. 66,709 d. 79,519 е. 60,996If you deposit money today in an account that pays 10.7 percent annual interest, how long will it take to double your money? a. 6.82 years b. 9.35 years c. 10.70 years d. 2.73 years e. The answer cannot be calculated without knowing how much money is initially deposited.Consider a perpetuity that pays £500 per year with its first payment at the beginning of t=5. What is its present value today (t=0), given an 8% discount rate? A) £2678.7. B) £2135.6. C) £4593.9. D) £4253.6.
- How much willan investment of GH< 20.000 be worth in 10 years at an interest rate of 10%% per annum payable semi-annually? A) GH¢ 54,304.89 B) GH 67,980.98 C) GH¢ 53,065.95 D) GH¢ 69,603.44 E) GH¢ 65,056.59K (Comprehensive problem) You would like to have $60,000 in 16 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 10 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be? (Assume you can earn 10 percent on this deposit.) c. At the end of five years, you will receive $15,000 and deposit this in the bank toward your goal of $60,000 at the end of year 16. In addition to the lump-sum deposit, how much must you deposit in equal annual amounts, beginning in year 1 to reach your goal? (Again, assume you can earn 10 percent on your deposits.) a. How much must you deposit annually to accumulate this amount? (Round to the nearest cent.) ...23. Find the future value of an ordinary annuity for P500,000 investment at 5% quarterly for 10 years. a. P5,436,194.64 b. P6,436,194.64 c. P2,820,372.22 P3,820,372.22 d. 24. Suppose you invested P1000 per quarter over a 15-year period. If money earns an annual rate of 6.5% compounded quarterly, how much would be available at the end of the time period. a. P100,400.65 c. P100,336.68 b. P40,336.68 d. P50,336.68 25. A bank loans a family P90,000 at 4.5% annual interest rate to purchase a house. The family agrees to pay the loan off by making monthly payments over a 15-year period. How much should the monthly payment be in order to pay off the debt in 15 years? a. P689.49 c. P688.49 d. P690 b. P678.49 26. A 5-year ordinary annuity has a present value of $1,000. If the interest rate is 8 percent, the amount of each annuity payment is closest to which of the following? a. P250.44 c. P181.62 d. P184.08 b. P231.91 27. An 8-year annuity due has a future value of $1,000. If the interest rate is…