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?
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- 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 ?(6) Suppose you are paying GHS 51.88 per week for 14 years to repay a GH¢18,000 loan. What is the annual effective interest rate.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.
- Suppose 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?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)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.
- 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.)a. What is the present value of 15 annual payments of $100, with the first payment one year from now, if the discount rate is 0.05? b. What is the present value of 15 annual payments of $100, with the first payment right now, if the discount rate is 0.05? c. What is the present value of 15 annual payments of $100, with the first payment five years from now, if the discount rate is 0.05? d. At what discount rate would the present value of 15 annual payments of $100, with the first payment right now, be 0? e. How many annual payments of $100, with the first payment right now, would it take to be worth more than $1,000, if the discount rate is 0.05? f. What is the value of 15 annual payments which begin at $100 one year from now and increase at 2% per year thereafter, if the discount rate is 0.05?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?
- 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 questionAt what interest rate will money: a. Double itself in 10 years? b. Triple itself in 10 years? c. Quadruple itself in 10 years?2. How many years are needed for the loan to mature from P100,000 to P250,000 at the quarterly interest rate of 7%?