What is the present value of $500.00 to be paid in two years if the interest rate is 4%? $ _____(round to the nearest integer, NO decimal point).
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What is the present value of $500.00 to be paid in two years if the interest rate is 4%? $ _____(round to the nearest integer, NO decimal point).
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- What is the present value of $500.00 to be paid in two years if the interest rate is 4%. $_____ (round to the nearest integer, no decimal point).Suppose a state lottery prize of $2 million is to be paid in 20 payments of $100,000 each at the end of each of the next 20 years. If money is worth 11%, compounded annually, what is the present value of the prize? (Round your answer to the nearest cent.) $A state lottery gives a winner the choice of receiving the winning amount in equal monthly payments for 20 years or receiving a lump sum equal to the present value of an annuity with future value equal to the winnings. The winner selecting monthly payments will receive $4,000,000/240 = $16,666.67 each month for each million dollars of winnings. (Round your final answers to two decimal places.) (a) Find the present value of an annuity with monthly payments of $16,666.67, at an Interest rate of 5.2% for 20 years, for the winner who wants a lump-sum payment. $ X (b) In order for the lottery to be more profitable, it is decided to pay the winnings in equal monthly payments for 25 years. Find the monthly payments of $4 million in winnings. $ Find the present value of an annuity with those monthly payments at 5.2% for 25 years. $
- QUESTION 1 A student has inherited $5,000. If it is placed in a savings account that earns 4% interest, how much is in the account in 30 years? Assume that the unit for your answer is in $. Only state the numeric value of your calculation.Present value is the value in today's dollars of funds to be paid or recelived in the future. If the current interest rate is 8%, then the present value of $1,000 to be received in7 years is $ (Enter your response rounded to two decimal places.)QUESTION 3 1.1) Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made for 30 years, at a nominal interest rate of 4% p.a. Then find the value of the monthly withdrawals (rounded to the nearest whole number) that can be made from this annuity for a period of 20 years, at a nominal interest rate of 5% p.a. Future value of monthly deposits = Monthly withdrawal =
- QUESTION 3 if you invest $1,000 for 3 years in a term deposit with simple annual interest rate of 10%, the future value of the deposits at the end of the term will be Do not type the $ sign. Express your result with no decimals.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)
- For the following questions, choose the letter of the best answer (Show any work and explanations): 1. A home loan is taken out for $162,000. The loan is for 30 years, with a nominal annual rate of 7.5%,resulting in monthly payments of $1,132.73. The interest portion of the first payment will be what? a) $1,012.50 b) $682.73 c) $120.23 d) Answer cannot be determined without more information 2. A $100,000 asset has a $20,000 salvage value after its 10-year useful life. The depreciation allowanceusing straight-line depreciation is closest to what value? a) $2,000 b) $8,000 c) $10,000 d) $12,000 3. With reference to the straight-line depreciation method, which statement is false? a) The deprecation life (n) is set based on the MACRS property classes. b) An equal amount of depreciation is allocated in each year. c) The book value of the asset decreases by a fixed amount each year. d) The asset is depreciated down to a book value equal to the salvage value. 4. This past year, CLL…A building sells for $325,000 and a 30% down payment is made. A 20-year mortgage at 4% is obtained. Do not round intermediate calculations. Round your answers in (a)-(d) to two decimal places, if necessary. Use the formula below as needed. Part: 0 / 4 Part 1 of 4 M = (a) Find the down payment. The down payment is $ p." n nt 1-(1 + # )¯** n oo (2 KBuying a Home - Personal Notes Scenario: You are getting a loan to buy your first home. It is a $250,000 home with 3 bedrooms and 2 bathrooms. The price is so low because the economy was bad, a lot of people lost their jobs, and few people are buying homes. You got the following information from the bank: Loan Amount: $150,000 Interest Rate 1 month ago: 4.5% Today: 4.1% Loan Period: 15 years (180 months) a. Based on what you are hearing from friends and what you know about supply and demand in financial markets, what would you predict about the level of interest rates for house loans in the future? Will they stay the same, increase, or decrease? b. Explain your answer by drawing and explaining 2 supply and demand curves, one showing the interest rate today (assume it is 4.1%) and one predicting what the interest rate will look like in 1 month. c. Based on what you know in this situation, does it matter when you make the decision to purchase a house?