4. Calculate the present equivalent at i = 15% per year using arithmetic gradient interest factors when the first year cashflow is $-8,000 and decreasing $1,000 per year until year 4.
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- K How much money should be deposited annually in a bank account for five years if you wish to withdraw $6,000 each year for three years, beginning five years after the last deposit? The interest rate is 2% per year. Click the icon to view the interest and annuity table for discrete compounding when i=2% per year. The annual deposit amount should equal $ per year. (Round to the nearest dollar.)8. Calculate the future equivalent at the end of 2012 at 8% per year, of the following series of cash flows in the figure: [Use a uniform gradient amount (G) in your solution] Years 2009 2010 2011 2012 $400 $600 $800 $1,000 F = ?When you take your first job, you decide to start saving right away for yourretirement. You put $ 5,000 per year into the company’s 401(k) plan, whichaverages 8% interest per year. Five years later, you move to another job andstart a new 401(k) plan. You never get around to merging the funds in the twoplans. If the first plan continued to earn interest at the rate of 8% per year for 35 years after you stopped making contributions, how much is the account worth?
- If you deposit $9,000 now, and youwithdraw it after six years at 9% annualinterest, what is the interest earned in the 3rd yearThe profit that Johnny got from selling fish have increased at a constant rate of P1100 in each of the last 3 years. If this year’s profit (end of year 1) is expected to be P6000 and the profit trend continues through year 5, a.) Draw a cash flow diagramb.) what will the profit be at the end of year 5c.) what is the present worth of the profit at an interest rate of 8% per year?How much do you need to deposit today into an account that pays 3% per year sothat you can make 10 equal annual withdrawals of P1000, with the first withdrawalbeing made seven years from now?
- It is estimated that a copper mine will produce 10,000 tons of ore during the coming year. Production is expected to increase by 5% per year thereafter in each of the following six years. Profit per ton will be $14 for years one to seven. a. Draw a cash flow diagram for this copper mine operation from the company's viewpoint. b. If the company can earn 10% per year on its capital, what is the equivalent of the coppermines cashflow in year seven?Leon and Heidi decided to invest $2,500 annually for only the first seven years of their marriage. The first payment was made at age 25. If the annual interest rate is 12%, how much accumulated interest and principal will they have at age 70? Click the icon to view the interest and annuity table for discrete compounding when /= 12% per year. .. The accumulated interest and principal will equal S nearest dollar) (Round to theGive typing answer with explanation and conclusion For an APR of 10% per year, if the interest is compounded weekly, determine the nominal rate per (a) 6 months and (b) 2 years. The nominal interest rate per 6 months is %. The nominal interest rate per 2 years is?
- A geometric gradient that increases at f= 5% per year for 15 years is shown in the accompanying diagram. The annual interest rate is 10%. What is the present equivalent value of this gradient? AClick the icon to view the diagram for geometric gradient values. Click the icon to view the interest and annuity table for discrete compounding when i= 5 % per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. 4... The present equivalent value of the gradient is $ (Round to the nearest dollar.)8. Consider a series of cash flows that begins with $1000 received at the end of year 7. At the end of year 8, you receive $1100, and $1200 at the end of year 9. This pattern of increasing cash flow receipts occurs through the end of year 20. What is the present equivalent value (time 0) of this cash flow series when the interest rate is 8% per year?Emily wants to save part of her salary for a new car in a savings account that earns 8% annual interest. At the end of the first year, she saves $1000 and increases her savings by $500 each year until she buys the car at the end of year 6. How much would be accumulated in her account at the end of year 6? Round to the nearest dollar.