X-person has committed to a payment that needs to pay BD 80,000 every year at the end of each next eleven years. What will be the future amount of Ahmed if it were to instead settle the claim immediately with a single payment, with an interest rate of 6%?solve the problem showing cash flow, and final answer using a suitable formula.
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X-person has committed to a payment that needs to pay BD 80,000 every year at the end of each next eleven years. What will be the future amount of Ahmed if it were to instead settle the claim immediately with a single payment, with an interest rate of 6%?solve the problem showing cash flow, and final answer using a suitable formula.
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- Suppose that you expect to receive an inheritance of £10,000 in one year. You will want to put this money then on a one-year deposit. Suppose further that, as of today, you are entering into a forward rate agreement to receive 4% on £10,000 for a one-year starting in one year. What is your gain/loss when the realised one-year forward rate in one year is higher than 4%? Provide a relevant example and explain your reasoning.Type the solutionpls. A man buys a house and lot worth P1M if paid in cash. On the instalment basis he pays P500,000 down payment; P100,000 at the end of one year and P150,000 at the end of two years and the final payment at the end of four years. Find the final payment if interest is 14% per annum.A civil engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 = P2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of A2 = P3000 per year for the following 3 years. How would the cash flow diagram appear if i = 6.5% per year?
- How many years would it take save an adequate amount for retirement if he deposits $2,100 per month (at the end of each month) into an account that pays 11 percent per year if he wishes to have a total of $1,000,000 at retirement? Include the following variables to help solve the problem: m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FVSuppose you find an annuity that pays 8% annual interest, compounded annually. If you invest in this annuity and contribute $10, 000 annually for 10 years, how much money will be in the annuity after 10 years? Enter your answer rounded to the nearest hundred dollars and omit the dollar sign and comma (For example $122, 570.21 should be input as 122600.) Provide your answer below:You are offered the choice of two annuities. A: Receive $100 every year for the next ten years. The first payment starts one year from today. B: Receive $204 every two years for the next ten years. The first payment starts two years from today. Without calculating the present values of the annuities, explain how you can obtain the rate of interest per annum that would make you indifferent between the two annuities.
- Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%. What should be the present value of this annuity? If you are given the first payment immediately starting today, what should be the worth of this annuity? Which payment mode will you accept? What will be basis of your decision under time value of money concept?Samuel wants to make regular annual payments of size P dollars into an annuity that pays interest of an annual rate of 0.25 or 25%. He wants to have 1.5 times the invested amount in the account after 5 years. A) Determine the size, P of the required annual payment. B) Create a table and do a step by step calculation to verify your answer in part AA person is preparing for his retirement and placed 50,000 Php in a time deposit with 6.5% interest per annum, compounded continuously.Using N for the monetary amount, what is the continuous compounding interest general solution? What is c? Using N for the monetary amount, what is the particular solution equation for the problem? How long (in years) will it take the retirement fund to reach 1 million Php?
- Your investment advisor wants you to purchase an annuity that will pay you $81,491 after 10 years. If you require a 7.8% return, what is the most you should pay for this investment? (Keep 2 decimal places)You are given the option of receiving P1,000 now or an annuity of P85 per month for 12 months. Which of the following is correct? * You cannot choose between the two without computing future values. The choice you would make when comparing the future value of each would be the same as the choice you would make when comparing present values. You will always choose the lump sum payment. You will always choose the annuity. You cannot choose between the two without computing present values.An investment offers to pay you $10,000 a year for four years. If it costs $27,980, what will be your rate of return on the investment? Use Appendix D to answer the question. Round your answer to the nearest whole number.