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- What is the value of today of an investment that will pay $100 per year for 5 years. Assume first payment is made 1 year from today and the interest rate is 7%?Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9 percent. What is the future value if the payments are made on the last day of the year? What if the payments are made on the first day of the year? a) $82,756.68; $90,204.78 b) $90,204.78; $82,756.68 c) $49,345.10; $53,786.16 d) $53,786.16; $49,345.10Consider an investment which pays $2,000 at the end of year 1, year 2, and year 3. In year 4, the investment will pay $5,000 and this payment will grow by 4.3% each year forever. If the appropriate interest rate is 7%, what is this investment worth today?
- How much will $5,000 to be received in 10 years be worth today if the interest rate is 7%?What is the value today of a money machine that will pay $1,507.00 per year for 10.00 years? Assume the first payment is made today and that there are 10.0 total payments. The interest rate is 7.00%.An investment offers $6,300 per year, with the first payment occurring one year from now. The required return is 5 percent. What would the value be today if the payments occurred for 10 years? What would the value be today if the payments occurred for 35 years? What would the value be today if the payments occurred for 65 years? What would the value be today if the payments occurred forever?
- How much money should you be willing to pay now for a guaranteed $500 per year for 10 years starting next year, at a rate of return of 15% per year?Answer followings (a) Suppose you wish to borrow $60,000 at an annually compounded interest rate of 16% for a period of 14 years. What would be the annual repayment? (b) You wish to invest $30,000 today in order to save $60,000 for a deposit to buy a house in several years’ time.How many years must you invest in order to have a future value of $60,000 if the interest rate is 12%? (c) What is the effective annual rate of a savings account with an annual interest rate of 5.9% compounded quarterly?18. Suppose that you will receive annual payments of $10,000 for a period of 10 years. The first payment will be made four years from now. If the interest rate is 6%, what is the present value of this stream of payments? (Round your answer to the nearest cent.)
- What would your investment account be worth in 23 years if you currently have $7,000 saved and plan to add $240 per month at the end of the month for the 23 years if the account pays 6% interest compounded monthly? What is the future value of an $800 annuity payment over 10 years if the interest rates are 6 percent? What is the present value of a $400 annuity payment over 5 years if interest rates are 6 percent?An investment opportunity requires that you deposit $1000 a year for 5 years. At the end of this time you will receive $500 a year for 10 years. Is this a good deal if the interest rate available on other deposits is 5%?An investment opportunity promises to pay $5,500.00 per year forever starting ten years from today. Assuming the interest rate of 7%, what should I pay today for this investment? $47,737.65 $58,194.98 $42,956.71 $30,111.39