Calculate the Present Value given the following: Jack invests $5,000 at the end of year 1, and every year increases his investment amount by $1000 for 5 years. Interest = 4%. N = 5
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Jack invests $5,000 at the end of year 1, and every year increases his investment amount by $1000 for 5 years.
Interest = 4%.
N = 5
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- Please help me answer the following time value of money question. Michael makes a $500 investment. At the end of 5 years, he has 700. Assuming that the interest is compounded monthly, what is the interest rate earned on his investment?You invest $10,000 at the end of each 5 years. If i=4%, What is the value of the account at EOY 5? (EOY: End Of Year)Todd Spodek will invest $5,000 at the beginning of each year for the next 9 years. The interest rate is 8 percent. What is the future value? A. $62,440 B. $67,435 C. $72,435 D. $58,471
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- An investor paid $58,000 for an investment. He will get $5,780 for every two years (forever). What is his effective annual rate of return? a) 4.98% b) 9.97% c) 4.86% d) 0.00%Sidney makes 10 annual deposits of 5,500 each into an investment account. The interest rate is 6% per year for the first 5 years and 10% per year thereafter. What is the future worth the deposits? Show workFind the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years. Draw a timeline for this question and solve? Timeline is compulsory. John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings account which pays him J12 = 6% p.a. He also wishes to deposit $X every month into that account so that when he retires at 55, he can withdraw $2000 every month end to support his retirement. He expects to live up till 70 years. How much should he deposit every month into his account?Draw a timeline for this question and solve? Timeline is compulsory.