I promise to pay you 25 annual installments of $5,000 starting five years from today. If the interest rate is 6%, how much are these payments worth to you today?

Q: You have just taken out a 30-year mortgage on your new home for $120,000. This mortgage is to be…

A: Use financial calculator:The present value of mortgage = 120,000The future value when all the loan…

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: You have $6,000 to invest in a 5-year certificate of deposit (CD) that pays 10% interest compounded…

A: A financial instrument in which an individual or company investment a lump-sum amount for a…

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: ou deposit $500 in an account earning 7% interest compounded annually. How much will you have in…

A: Given information: Present Value of deposited money : $500 Interest rate : 7% Time period : 10 years…

Q: How much should you be willing to pay for an annuity that begins in 3 years and pays $100 dollars…

A: The monthly discount rate, expressed as a percentage, is an important financial measure used to…

Q: What are the monthly payments you will receive if your retirement nest egg of $ 1,000,000 is in a 5%…

A: Present valueof the retirement Amount $ 10,00,000.00Interest rate5%Tenure, years20Compounding…

Q: You will deposit $105 from each of your bi-weekly paychecks.  You think that you can earn an…

A: Future value of an annuity is a financial concept used to determine the future value of a series of…

Q: You borrow $8000 to help pay your college expenses. You agree to repay the loan at the end of 6…

A: Present Value (PV) of loan = $8,000Annual interest rate = 9% or 0.09Quarterly interest rate (r) =…

Q: You've been offered a loan of $20000, which you will have to repay in 5 equal annual payments of…

A: Present Value = pv = $20,000Number of Payment = n = 5Payment = p = $6000

Q: Suppose you have $2,100 and plan to purchase a 10-year certificate of deposit (CD) that pays 13.1%…

A: Value when the CD matures = 2100 x (1 + 0.131)^10 = $7191.93

Q: Assume that you make monthly payments of $ 625 into an ordinary annuity paying 4% compounded…

A:

Q: Your aunt promises to gift you $1,500 now, $1,700 one year from now, $1,900 two years from now, and…

A: The future value is reflective of the value of cash flows in the future after compounding them using…

Q: The Solvent Insurance Co. will pay you $4,750 a year for 15 years in exchange for $45,000 today.…

A: in this you have to find out present value FACTOR and from that you can get interest rate.

Q: How much would you be willing to pay today for an ordinary annuity that makes equal annual payments…

A: An ordinary annuity is the series of an equal payment that is paid or received at each week, month,…

Q: Calculate the annual payments for a $15,644 loan that you will repay over 5 years. The bank gives…

A: Annual payments (P) on a loan (PV) of amount $15,644 with an interest rate ( r ) of 6.6% and with 5…

Q: How much should you pay today for a 10 year annuity that will provide annual payments of $10,000?…

A: Annual payment = $10,000Interest rate = 4%Period of annuity = 10 years

Q: You finance a $200, 000 thirty year mortgage on which you agree to make monthly annuity payments.…

A: Annuity refers to a series of cash flows that occurs on a periodic basis. Here the mortgage will be…

Q: You've been offered a loan of $10000, which you will have to repay in 10 equal annual payments of…

A: We take loans to buy large ticket items like a car or a house or to fund high expenses like college…

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 purchase a 10-year annuity that pays you \$ 30000 / v * ear . The first payment will begin in…

A:

Q: Suppose that your unsubsidized Stafford loans plus accumulated interest total $ 27000 at the time…

A: Compound = monthly = 12 Present value = pv = $27,000 Interest rate = 8 / 12% Time = t = 10 * 12 =…

Q: If you deposit $50 a month each month into an IRA earning 6% interest, how much will you have in the…

A:

Q: You need to have $33,500 in 14 years. You can earn an annual interest rate of 5 percent for the…

A: The deposit amount today is calculated as the present value of required amount in future. Present…

Q: you deposit $1,000 each year into an account earning 3% interest compounded annually. How much will…

A: Time value Value received today by an individual is of more worth than receiving the exact value in…

Q: If you borrow $2,200 and agree to repay the loan in five equal annual payments at an interest rate…

A: Loan means lending money by one or more individuals or organizations to other individuals or…

Q: Assume that you make quarterly payments of $ 750 into an annuity paying 9% interest compounded…

A: Quarterly payment = $750 Interest rate = 9% Quarterly rate = 0.09/4 = 2.25% Time =10 years Quarterly…

Q: ou deposit $300 in an account earning 6% interest compounded annually. How much will you have in the…

A: Amount Deposited = $300 Interest Rate(r) =6% Years(N) =10

Q: You owe your parents $23,000 (in present day dollars) and want to repay them in equal amounts the…

A: Present value factor of 8.9% compounded monthly for 4 years will be = 1/(1+8.9%/12)12 x4..=…

Q: Find out how much you should deposit now at 9% interest, compounded annually, to yield an annuity…

A: Present value = ( a / r) * { 1 - 1 / (1 + r ) ^ n }

Q: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…

A: Required :The discounted value of these cash flows.

Q: You need to have $30,750 in 11 years. You can earn an annual interest rate of 6 percent for the…

A: To calculate the deposit amount we will use the below formula   Deposit amount =…

Q: You deposit $6000 in an account earning 5% interest compounded monthly. How much will you have in…

A: When a principal amount grows with interest over a time period, it is known as the future value.…

Q: Determine the interest rate you will pay if you are approved for a loan of $112,000 with annual…

A: Interest Rate: It helps in the computation of the present value or future value of…