You have been offered a bond that will pay you $10,000 on the last day of every quarter for the next six years in exchange for a fixed payment today. What is that fixed payment equal to if the appropriate annual interest rate on the investment is 8%? compounded on a quarterly basis? $240,000 $189,139.26 $30,000 O $46,228.80
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityAn investment promises to pay into an account that pays you 6 percent annually, $150 permonth for the next twenty-two years. Suppose the first deposit into the account is made onemonth from today what is the value of the amount which will be in the account at the end ofthirty years?You are borrowing $300,000 for 20 years at 4%. Payments will be made monthly. What is the total amount of interest you will pay if you pay the loan as agreed over the 20 years? a. $114,786 b. $124,340 c. $136,306 d. $164,120 e. $196,342
- You expect to receive the following: $1,691 at the end of each year for 12 years $16,002 $3,822 today at the end of year 6 $1,080 at the end of each year forever $11.802 at the end of 15 years What is the uniform annual payment for the first 12 years equivalent to the above payment scheme, if the interest rate is 8%? Enter your answer as follow: 123456Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest is compounded semi-annually. If you make 20 consecutive semi-annual deposits of $500 each, with the first deposit being made today, what will your balance be at the end of Year 20?a. $52,821.19b. $57,900.83c. $58,988.19d. $62,527.47e. $64,131.50If you require a 12% annual return on your investments, would you prefer S20, 000 six years from today or an annuity paying Sl, 800 at the beginning of each year for 13 years. a. The annuity paying Sl, 800 at the beginning of each year for 13 years.b.The annuity paying Sl, 600 at the beginning of each year for 15 years.c.The S20, 000 six years from today d.The S20, 000 five years from today
- Assume you can obtain an annual interest rate of 12% compounding monthly. You are going to invest $1,000 for two years. What interest rate will be compounded? O 12% O 24% O 6% O 1%You decide to save $75,000 at each year - end for three years, starting with the first deposit at the end of year 1. If the interest rate is 8% compounded quarterly, the future value at the end of year 3 is A. 243, 480 B. 244, 049 C. 283, 435An investment promises to pay into an account that pays you 6 percent annually, $151 per month for the next twenty-two years. Suppose the first deposit into the account is made one month from today what is the value of the amount which will be in the account at the end of twenty years? Rounded to 2 decimal places.
- What is the present value of a security that will pay $2,000 at the end of each year for 6 years if securities of equal risk pay 5% annually? What if the payments occur at the beginning of each period?Calculate the future value in five years of $5,000 received today if your investments pay. 6 percent compounded annually 8 percent compounded annually 10 percent compounded annually 10 percent compounded semiannually 10 percent compounded quarterly What do your answers to these questions tell you about the relation between future values and interest rates and between future values and the number of compounding periods per year?An investment promises to pay into an account that pays you 6% annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made one month from today what is the value of the amount which will be in the account at the end of 30 years? Rounded to 2 decimal places.
