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- Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 7%interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $enter your response here. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $enter your response here. (Round your response to the neareast two decimal place)
- ▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)ework (CIT 25) This question addresses the impact of saving on an economy by examining what happens if tax laws change to induce saving and how changes in tax laws can discourage saving. The following graph shows the market for loanable funds. Show the impact of a change in the tax law that successfully encourages saving by shifting either the demand curve (D), the supply curve (S), or both. (?) S INTEREST RATE F2 F3 11 F4 d F5 COL F6 % 。。。。 O F7 A F8 & & F9 * F10 F11 ) F12 2 Fn Lock D Insert Prt Sc + X 1:44 PM 4/29/2022 (2 D Ba
- 1. Future and present values Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate of 5%, consider the present and future values of this gift, depending on when you become engaged. Complete the first row of the following table by determining the value of the gift in one and two years with interest if you become engaged today and save the money. Date Received Today In 1 year In 2 years Present Value (Dollars) 1,000.00 Value in One Year (Dollars) 1,000.00 Value in Two Years (Dollars) 1,000.00 Now complete the first column of the previous table by computing the present value of the gift if you get engaged in one year or two years. The present value of the gift is if you get engaged in one year than it is if you get engaged in two years.If the interest rate is 7.0%, what is the present value of a perpetuity paying $210 per year? (A perpetuity is a bond that makes payments forever.) Round to the nearest dollar. Do not use dollar signs or commas in your answer. Example: if the answer is $1,234.56, then write "1235"Show complete solution (please write eligibly) What is the amount of 10 equal annual deposits starting 1 year from now, that can provide five annual withdrawals, when a first withdrawal of $2902 is made at the end of year 11, and subsequent withdrawals increase of $502 per year over the previous year’s, if the interest rate is 8%, compounded quarterly? Round off interest rate to five decimal places Round your answer to 2 decimal places. Use any of the following formula to solve the problem
- Show complete solution (please write eligibly) What is the amount of 10 equal annual deposits starting 1 year from now, that can provide five annual withdrawals, when a first withdrawal of $2902 is made at the end of year 11, and subsequent withdrawals increase of $502 per year over the previous year’s, if the interest rate is 8%, compounded quarterly? Round off interest rate to five decimal places Round your answer to 2 decimal places.Calculate the present value of an annuity with monthly deposits of $2,000 at 5% for 20 years. Discuss how the present value of an annuity will change if the deposit is doubled?John Doe received the following information in a mailed advertisement: "You could borrow $4,400 for just $184.62 per month for 36 months at 29.1% APR. Get the money you need at a payment you can afford." Would you take this borrowing opportunity? What is the effective interest rate being charged to the borrower? Assume the maximum acceptable interest rate is 15%. The effective annual interest rate is %. (Round to two decimal places.)