Your rich aunt gives you a high school graduation present of $190,000. Her present is in the form of a 15-year bond with an annual interest rate of 4% (compounded annually). The bond says that it will be worth $190,000 in 15 years. What is this gift worth at the present time? (Round your answer to the nearest cent.)
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Your rich aunt gives you a high school graduation present of $190,000. Her present is in the form of a 15-year bond with an annual interest rate of 4% (compounded annually). The bond says that it will be worth $190,000 in 15 years. What is this gift worth at the present time? (Round your answer to the nearest cent.)
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- Your rich uncle has just given you a high school graduation present of $1,600,000. The present, however, is in the form of a 17-year bond with an annual interest rate of 7.4% compounded annually. The bond says that it will be worth $1,600,000 in 17 years. What is this gift worth at the present time? (Round your answer to the nearest cent.)A man purchases a bond for $900. The bond has a face value of $1,000 and pays semi-annual interest payments of $50 each. If the bond is paid in full after 10 years, what annual rate of return will the man receive?Your uncle gives you $92,000 as a gift. Rather than give you a lump-sum, your uncle structures the gift as an annuity that pays $16,250 per year. You will receive the first payment one year later. If the annual interest rate is 12%, how many years does it take for you to receive all the payments for this gift?
- A rich aunt has promised you $1,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 7% larger than the last payment. She will continue to show this generosity for 25 years, giving a total of 25 payments. If the interest rate is 7%, what is her promise worth today? Your rich aunt's promise is worth $0 today. (Round to the nearest cent.) Cf. d. Erica is depositing $5,000 today and plans to invest her money for 5 years. If she can get a rate of return of 6% each year compounded annually, how much will she have in her account in 5 years? ( e. How much interest will Erica earn over the five year time span? ( CRIMSON Company issues a $1,000,000 bond with a stated interest rate of 5% payable each December 31. The market interest rate is 8%. The bonds mature in 20 years. What will be the price of the bond?A rich relative has bequeathed you a growing perpetuity. The first payment will occur in one year and will be $2,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 8% larger than the last payment. This pattern of payments will go on forever. If the interest rate is 15% per year, a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made? a. What is today's value of the bequest? Today's value of the bequest is $ (Round to the nearest dollar.) b. What is the value of the bequest immediately after the first payment is made? The value of the bequest immediately after the first payment is made is $ (Round to the nearest dollar.)
- In order to pay for college, the parents of a child invest $15,000 in a bond that pays 7% interest compounded semiannually. How much money will there be in 21 years? Round your answer to the nearest cent. In 21 years the bond will be worth $ X ŚA rich aunt has promised you $2 comma 000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 3% larger than the last payment. She will continue to show this generosity for 15 years, giving a total of 15 payments. If the interest rate is 5%, what is her promise worth today? The present value of the aunt's promise isA newly wedded couple is planning to buy a two bedroom apartment in Windhoek for N$280000. He is expected to pay a 10% deposit and they can secure a bond from a local bank repayable over 24 years at 9% p.a. interest. (a) What is the total amount of money expected to be paid to the bank over the years? N$ (b) (i) What will be the couples monthly installment? N$ (ii) Calculate the monthly interest amount they will have to pay? N$ (iii) What is the monthly principal amount to be paid? (iv) what is the total interest amount to be paid at the end of the bond period?
- Suppose your parents decide to give you $10,000 to be put in a college trust fund that will be paid in equally quarterly installments over a 5 year period. If you deposit the money into an account paying 1.5% per quarter, how much are the quarterly payments (Assume the account will have a zero balance at the end of period.)A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $3,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 5% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 15% per year. a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made?On his son's fifth birthday, a man decides to deposit a certain amount which will be equivalent to 28,000 with today's purchasing power of the peso on his son's eighteenth birthday when he starts his college education. If the bank pays 5 1/2% interest compounded annually but the rate of inflation is 8.7% compounded annually, how much should the man deposit now?