• Suppose you are offered two options: (i) receive Taka 30,000 at the end of 5 years or (ii) receive Taka P today and another P after two years. When you invest the Takas in business that pays 8% or more profit yearly. What value of P would be same as promise of Taka 30,000 to you after 5 years? Assume there is no risk in this future payment.

Q1. How much will a $65,000 investment today be worth in 8 years if it earns 6% annual compound interest?

2.5 To purchase a new truck, you borrow $42,000. The bank offers an interest rate of 7.5% compounded monthly. If you take a 5-year loan and you will be making monthly payments, what is the total amount that must be paid back? a. What is the number of time periods (n) you should use in solving this problem? b. What rate of interest (i), per period of time, should be used in solving this problem?

Down payment Annual payments Years Discount rate plan A 1.297.19 5.342.38 20 12% What is the present value of plan B? plan 8 2.869.46 7.761.18 20 12% $278.29 9.449.95 20 12%

ECONOMICS UPVOTE WILL BE GIVEN. PLEASE WRITE THE SOLUTIONS LEGIBLY. NO LONG EXPLANATION NEEDED.  Shala Co. is making a decision about investing in new technology. It currently expects to earn Php 100,000,000 in its lifetime. If it invests in brand-new equipment today, its expected earnings will permanently increase by 5% per day. What is the expected value of investing in the new equipment?

Kevin invested part of his $5000 bonus in a certificate of deposit (CD) that paid 2% annual simple interest, and the remainder in a mutual fund that paid 4% annual simple interest.  If his total interest for that year was $140.00, how much did Kevin invest in the mutual fund? Group of answer choices Kevin invested $4986.00 in the mutal fund. Kevin invested $4846.00 in the mutal fund. Kevin invested $2000.00 in the mutal fund. Kevin invested $2140.00 in the mutal fund.

A $1000 face-value coupon bond has a current yield of 5.75% and a market price of $1060. What is the bond’s coupon rate?

1. Engr. Dela Cruz, the buyer of a certain equipment may pay either in 4,000.00 cash down paymentand 2,000.00 annually for the next 6 years, or pay 5,000.00 cash down payment and 2,000.00 annuallyfor the next 5 years. A.) What type of annuity are the options of Engr. Dela Cruz?B.) If money is worth 12% compounded annually, which method of payment is better for Engr.Dela Cruz and how much?

Q3

Ordinary annuity payment. Fill in the missing annuity in the following table for an ordinary annuity stream: Number of Payments or Years 6 21 33 15 Annual Interest Rate 9% 4% 6% 10% Future Value $0.00 $24,000.00 $0.00 $98,433.34 Annuity (Round to the nearest cent.) $ (Round to the nearest cent.) $(Round to the nearest cent.) (Round to the nearest cent.) Present Value $24,000.00 $0.00 $150,000.00 $0.00