What is the present value of a loan that calls for the payment of OMR500 per year for six years if the discount rate is 10 percent and the first payment will be made one year from now? How would your answer change if the OMR500 per year occurred for ten years?
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A: Information Provided: Amount received at the end of two years = $300 Amount received at the end of…
Q: 11. What is the present value of a loan that calls for the payment of OMR500 per year for six years…
A: Present value of loan is the amount of loan which has been taken by the borrower from the lender.…
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A: The annuity discussed here is a form of deferred annuity.
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Q: %.
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A: The given problem can be solved using NPER function in excel.NPER function computes no. of years/…
Q: What is the present value of a $700 annuity payment over six years if interest rates are 10 percent?
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Q: ke for your money to grow to five times its original value if the interest rate of 5% per year?
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Q: assume that you pay 10000 on a yearly basis for 10 years, how much will pay after ten years if the…
A: Given, PMT = 10000 Number of years = 10 Number of periods = 10 Interest rate = 5% = 0.05
Q: What is the future value of an ordinary annuity that promises $60,000 per year for 10 years if the…
A: Given: PMT = Payment = $60,000 NPER = Number of years = 10 Interest rate = 4%
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- 11. What is the present value of a loan that calls for the payment of OMR500 per year for six years if the discount rate is 10 percent and the first payment will be made one year from now? How would your answer change if the OMR500 per year occurred for ten years?what is the present value of a loan that calls for the payment of $500 per year for six years if the discount rate is 10 percent and yne forst payment will be made one year from now ? how would your answer change if $500 per year occured for ten years ?Question: What is the present value of $1000 to be paid in five years if the interest rate is 10%? (Note: you need to show time line and your solution)
- 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; $49,345.10Suppose you are going to receive $13,500 per year for five years. The interest rate is 8.4%a. What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due?b. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? What if the payments are annuity due?c. Which has the highest present value (future value), the ordinary annuity or annuity due?Suppose you are going to receive Rs. 63,800 per year for five years. The appropriate interest rate is 7.3 What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due? Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? What if the payments are an annuity due? Which has the highest present value, the ordinary annuity or annuity due? Which has the highest future value? Will this always be true? Note- Answer all the parts of the question
- 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.)2 (a)Suppose you expect to receive GH¢ 2,000 per year for the next 22 years except that you will not receive any payment in year 4, 6, 11 and 18. What is the present value of this amount if the interest rate is 24% per year compounded yearly.1.Suppose you can save $200 per year at the end of each year for 15 years and earn 7.49% interest per year. However, you cannot start saving for five years. What is the present value of this annuity? 2.What are the annual payments for a 4-year $4,000 loan if the interest rate is 9% per year? Make up a loan amortization schedule.
- At what interest rate will money: a. Double itself in 10 years? b. Triple itself in 10 years? c. Quadruple itself in 10 years?What is the present value of $3,000 paid each year forever, assuming a discount rate of 5% and the first payment occurs one year from now? Equivalently: What amount would you have to invest today at an interest rate of 5% to generate an annual payment of $3,000 forever?4. You are offered an annuity that will pay R17,000 per year for 7 years (the first payment will be made today). If you feel that the appropriate discount rate is 11%, what is the annuity worth to you today? 15. If you deposit R15,000 per year for 9 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 8%, what will your account be worth at the end of 9 years?