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- (Related to Checkpoint 5.2) (Future value) (Simple and compound interest) If you deposit $1,000 today into an account earning an annual rate of return of 11 percent, in the third year how much interest would be eamed? How much of the total is simple interest and how much results from compounding of interest? GE If you deposit $1,000 today into an account eaming an annual rate of retum of 11%, in the third year how much interest would be eamed? (Round to the nearest cent)1. A company wants to give an endowment for a college. They wish to give $10,202.41 in perpetuity. What would be the present value if the interest rate is 8.1%? 2. Assume that you currently have $53,296 in the bank. That you are going to receive $619 yearly until the day of your retirement (22 years from now). What is the present value of all these cash flows if the interest rate is 6.84%? 3. Assume that you are going to receive $468 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.69%? 4. Assume that you currently have $52,385 in the bank. That you are going to receive $585 four times a year until the day of your retirement (30 years from now). What is the present value of all these cash flows if the interest rate is 6.12%?1. A company wants to give an endowment for a college. They wish to give $10,202.41 in perpetuity. What would be the present value if the interest rate is 8.1%? 2. Assume that you currently have $53,296 in the bank. That you are going to receive $619 yearly until the day of your retirement (22 years from now). What is the present value of all these cash flows if the interest rate is 6.84%? 3. Assume that you are going to receive $468 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.69%? 4. Assume that you currently have $52,385 in the bank. That you are going to receive $585 four times a year until the day of your retirement (30 years from now). What is the present value of all these cash flows if the interest rate is 6.12%? Give me answer all questions
- K Suppose you receive $500 at the end of each year for the next three years. a. If the interest rate is 7%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 7% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)? a. The present value of the cash flow is $ (Round to the nearest cent)A person wants to have (5000 CU) pay for his education at the end of each year for (6 years). If the bank rate of interest is (11.5%), how much money has to be deposit at present. Q2:A company invests in one of three alternatives, the life of all alternatives is estimated to be (5 years) with the following investments, annual returns, and salvage value: Alternatives 3 200000 CU 70000 CU 50000 CU Details Alternatives 1 Alternatives 2 Investment 150000 CU 175000 CU Annual equal return 60000 CU 70000 CU 15000 CU 25000 CU Salvage value Determine the best alternative based on Net Present Worth Comparison (NPW) by assuming i=10%.You deposit $2500 each year into an investment account that earns 8.5% interest for 20 years.Find the value of sn\i. Group of answer choices 11.76470588 16.87675201 51.10869654 48.37701323
- You are calculating the present value of $1,000 that you will receive five years from now.Which table will you use to obtain the present value factor to multiply to calculate thepresent value of that $1,000?a. Present Value of $1 tableb. Future Value of $1 tablec. Present Value of Ordinary Annuity of $1d. Future Value of Ordinary Annuity of $19. Suppose you need $1.000 ten years from now to settle your university education fees. If the interest rate is 5.5%, how much should you deposit today in the bank? a) $585.43 b) $614.70 O c) $645.44 O d) $677.71 e) None of the aboveA company would like to have $400,000 in 6 years. How much should be invested semiannually into an account paying 3.6% compounded semiannually? 7. Identify the type of problem. a. Present Value with compound interest b. Future Value of an Annuity c. Present Value of an Annuity d. Amortization e. Sinking Fund 8. Answer the question in the problem. a. $30,681.38 b. $29,754.02. c. $34,245.54 d. $30,160.79 c. $28,541.46
- If you were to put $1,000 in the bank each year for the next 10 years at 6% interest, which table would you use to find the ending balance in your account? Group of answer choices Future value of $1 Present value of an annuity of $1 Future value of an annuity of $1 Present value of $1Suppose you receive$130 at the end of each year for the next three years. a. If the interest rate is10%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in(a)? c. Suppose you deposit the cash flows in a bank account that pays 10%interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?Assume that you will need 60million shillings in your specialsaving account five years fromnow, to invest in a valuelincreasing project. You areprepared to make three equalannual deposits into the accountat the end of each year in orderto achieve this saving target (firstinstalment begins at the end ofyear 2 from now). There is noinflation and the bank imposedno charges at all on savingsaccount but it pays you intereston the balance at 9percent perannum. What amount must youdeposit in the account at eachyear - end?