In five years we need $125,000. How much do we deposit today if the annual interest rate is 8%, compounded annually?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityA loan of $60,000 is due 10 years from today. The borrower wants to make annual payments at the end of each year into a sinking fund that will earn compound interest at an annual rate of 10 percent. What will the annual payments have to be? Suppose that the monthly payments earn 10 percent interest, compounded monthly. What would the annual payments have to be?If you deposit $5,000 4 years from today, how much will you be able to withdraw 10 years from today if interest is 8.5% per year compounded annually?
- If you want to receive $1,000 each year for the next three years how much should you invest today? Assume the annual interest rate to be 10%.What's the future value of $15,000 after 5 years if the appropriate interest rate is 14.75%, compounded annually?If you invest $1,000 each month for five years, what will be the value of the investment after five years, if the annual interest rate is 12%
- With an interest rate of 14.5% compounded annually, how much will be required in 10 years to repay a $12,000 loan received today?Suppose your opportunity cost (interest rate/year) is 11% compounded annually. How much must you deposit in an account today if you want to pay yourself $230 at the end of each of the next 15 years? How much must you deposit if you want to pay yourself $230 at the beginning of each of the next 15 years?Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent, what is the present value of this amount if interest is compounded (a) annually? (b) quarterly? (c) continuously?
- An investment offers $1,000 per month forever. The first payment will occur three months from today. What is the present value of this investment if the annual percentage rate is 24 percent?You will receive 24 annual payments of $40,500. The first payment will be received 5 years from today and the interest rate is 6.9 percent. What is the value of the payments today?an investment offers 3850 per year for 15 years, with the first payment occurring one year from now. If the required return is 6 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever?