Problem 4-2 Calculating Future Values [LO 1] For each of the following, compute the future value: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value $ 2,900 8,953 94,305 232,382 Years 6 19 13 29 Interest Rate 19 % 7% 12% 4 % Future Value

Problem 4-2 Calculating Future Values [LO 1] For each of the following, compute the future value: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value $ 2,900 8,953 94,305 232,382 Years 6 19 13 29 Interest Rate 19 % 7% 12% 4 % Future Value

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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2 decimal plac
Question 1 1.5 pts You win the lottery and are told you won $42000000. You actually won $1000000 every year for the next 42 years. If the first payment were to be made today and your required rate of return is 6% (effective annual rate) what would you accept today (in dollars) in exchange for all those 42 payments? (Round your answer to three decimal places. For example, 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)
None
Problem 5-15 Calculating the Interest Rate (LO2) Find the interest rate implied by the following combinations of present and future values. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Present Value $360 163 260 Years 10 3 6 Future Value 708 217 260 Interest Rate % % 0 %
Problem 5-6 Present Value of an Annuity Due (LG5-6)If the present value of an ordinary, 6-year annuity is $5, 600 and interest rates are 7.5 percent, whats the present value of the same annuity due?Note: Round your percentage answer to 2 decimal places (i. e.. 0.1234 should be entered as 12.34).
Problem 5-26 Calculating Annuity Present Values [LO 1] Beginning three months from now, you want to be able to withdraw $3,400 each quarter from your bank account to cover college expenses over the next four years. If the account pays 74 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Amount needed
Problem 6-41 Calculating Annuity Present Values [LO2] You want to borrow $87,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,550, but no more. Assuming monthly compounding. what is the highest rate you can afford on a 72-month APR loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate %
Hw 4
Question 22 solution send me only text typing work you just won a lottery and are offered three options for the payment(s). Which one would you prefer, based on. the largest present value? The interest rate assumption is 4.5% A. A payment of $1,2000,000 to paid now. B. $150,000 per year for the next 10 years. C. $12,500 paid monthly for 10 years. Calculate and show your work on how you arrived at your decision to get full credit
Not use excel
QUESTION 4 Jamal wants to invest $4,300 in an account with an interest rate of 7.2% that is compounded CONTINUOUSLY. Which of the following choices will correctly calculate the amount of money in Jamal's account after 9 years? A. 7.2) 12x9 Amount = 4300 1+ 12 O B. Amount = 0.072x9xe4300 O C. Amount = 4300e0.072 × 9 12 x 9 D. 0.072 Amount = 4300 1+ 12 7.2 x 9 O E. Amount = 4300e O F. Amount = 4300x 7.2xe9
Problem 5-10 Calculating Perpetuity Values [LO 1] The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $29,000 per year forever. Assume the required return on this investment is 7.5 percent. How much will you pay for the policy? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Policy value today

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