In saving for a future major purchace, Oksana has been making uniform deposits of $5,000 per year in anaccount that has earned variable annual interest rates of i1 = 12 = i3 = 5% and i4 = i5 = 7% (see cash flowdiagram below). How much does she have in the account immediately after making the last deposit?The account will have $i₁i₂mi3(Round to the nearest dollar.)i5

Future Value = PV*(1+r)^twhere, 'r' represents the interest rate't' is time.

In saving for a future major purchace, Oksana has been making uniform deposits of $5,000 per year in an account that has earned variable annual interest rates of i1 = 12 = 13 = 5% and i4 = i5 = 7% (see cash flow diagram below). How much does she have in the account immediately after making the last deposit? The account will have s i₁ i₂ i3 (Bound to the nearest dollar) i4 i5

In saving for a future major purchace, Oksana has been making uniform deposits of $5,000 per year in an account that has earned variable annual interest rates of i1 = 12 = 13 = 5% and i4 = i5 = 7% (see cash flow diagram below). How much does she have in the account immediately after making the last deposit? The account will have s i₁ i₂ i3 (Bound to the nearest dollar) i4 i5

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Direction: Solve manually, use 5 decimal in interest rate, and draw the cash flow diagram. A woman is considering giving an endowment to a university in order to provide payments of P5000 and decreasingly by 4% at the end of each quarter during a year. If interest rate is 10% compounded monthly, what is the capitalized equivalent that must be deposited now so that the bi-monthly payment can be repeated forever?
X-person has committed to a payment that needs to pay BD 80,000 every year at the end of each next eleven years. What will be the future amount of Ahmed if it were to instead settle the claim immediately with a single payment, with an interest rate of 6%?solve the problem showing cash flow, and final answer using a suitable formula.
Marsha Stone is thinking about investing $10,000 for a period of 1 year, 1 year from now, in an interest bearing security. Jamila, at the bank, is assisting her in choosing the appropriate investment. She pulls up the current interest rate data on her computer and lets Marsha has a look at it. A review of interest rates reveals as follows: Current 1-year rate = 2% p.a.Current 2-year rate = 4% p.a. Both Jamila and Marsha are confused with the information because though the interest rates for one and 2 year investments are available, the interest rate for a 1-year investment that will commence one year from now, is not there to see. Imagine that you are Jamila’s supervisor. How can you help the two ladies out? How much money will Marsha end up with when her investment matures? Show relevant calculations to support your response.Assume that Pure Expectations theory is valid.
Teal and Associates needs to borrow $65,000. The best loan they can find is one at 12% that must be repaid in monthly installments over the next 5 1/2 1 2 years. How much are the monthly payments? (a) State the type. A. ordinary annuityB.sinking fund C.present valueD.amortizationE.future value (b) Answer the question. (Round your answer to the nearest cent.)
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2 ENGINEERING ECONOMICS: ANNUITY. Show complete solution and INCLUDE CASH FLOW DIAGRAM. Write legibly
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Step by step please
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