Q1)Suppose you save $4,000 per year at the end of each year for 3 years and earn 5% interest per year. How much will you have at the end of 3 years? a)Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years? b)Suppose you save $1,000 per year at the beginning of each year for 3 years and earn 5% interest per year. What is the present value of this annuity?
Q1)Suppose you save $4,000 per year at the end of each year for 3 years and earn 5% interest per year. How much will you have at the end of 3 years?
a)Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per year. How much will you have at the end of 10 years?
b)Suppose you save $1,000 per year at the beginning of each year for 3 years and earn 5% interest per year. What is the
c)Suppose you save $500 per year at the end of each year for 15 years and earn 8.25% interest per year. What is the present value of this annuity?
d)Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 8%. What is the value of this perpetuity?
e)Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 10%. What is the value of this perpetuity?
Step by step
Solved in 4 steps with 6 images
