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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityHow much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?What is the present value of an annual annuity payment of Php7,000 made for 12 years with a required return of 5% with the first payment starting today? A. Php3,898 B. Php65,145 C. Php62,043 D. Php11,200 What is the present value of a semi-annual ordinary annuity payment of Php7,000 made for 12 years with a required annual return of 5%? A. Php 65,145 B. Php128,325 C. Php125,195 D. Php 62,043
- A. Get the present value of the simple ordinary annuity (Php1000 pesos monthly with 0.0625% interest compounded monthly for 5 years) B. Get the present value of the general annuity (Php 1000 pesos monthly with 0.0625% interest compounded quarterly for 5 years) C. Get the present value of the deferred annuity (Php 1000 pesos monthly with 0.0625% interest compounded monthly for 5 years)What's the present value of a 4-year ordinary annuity of Php2,250 per year plus an additional Php3,000 at the end of Year 4 if the interest rate is 5%?If a 5-year ordinary annuity has a present value of Php 1,000, and if the interest rate is 10 percent, what is the amount of each annuity payment? A.Php 240.42 B. Php 263.80 C. Php 300.20 D. Php 315.38 E. Php 346.87