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- Problem 2: You were entitled to receive $5,000 at the end of six months for the rest of your life. If the interest rate is 10% compounded monthly, what is the present value of perpetuity? *Please show your correct and complete solution to the problem. Thank you!If you borrowed $30,000 at 25% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay? (Please Include Equations used and cashflow diagram)Topic: Gradient Geometric What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $29695 is made at the end of year 11, and subsequent withdrawals increase at the rate of 10% per year over the previous year’s, if the interest rate is 10%, compounded annually? Note: Draw the cash flow diagram and use interest rate with five decimal places.
- Topic: Gradient Geometric A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is to accumulate P2908875 in the account by the time he retires from work in 20 years. A local bank is willing to open a retirement account that pays 10% interest compounded semiannually, throughout the 20 years. He wishes to start with a deposit at the end of the end of 1st semiannual and increase the deposit by 5% per semiannual thereafter. What should be the size of his first semiannual deposit? Note: Draw the cash flow diagram and use interest rate with five decimal places.3. If you deposit $1000 in an account that pays 5% interest, compounded annually, how much will you have at the end of 10 years? 50 years? 100 years? What if this is compounded Semi annually in 10 years? 50 years? 100 years?In 1803, Napoleon sold the Louisiana Territory to the United States for $0.04 per acre. In 2017, the average value of an acre at this location is $10,000.What annual compounded percentage increase in value of an acre of land has been experienced?
- Subject: engineering economics A 1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be redeemed at par at the end of this period. If it is sold now for 1, 200 determine the yield at this price.1. An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I have agreed to lend him the money today (n=0) at an interest rate of 8% compounded quarterly. I required that the loan be repaid in eight annual payments starting at Year 4 with a $20K payment. Subsequent payments will decrease by $1K each year thereafter. (1) What is the present value of the money being borrowed? (2) Convert your Present Value to Annual Payment.6. Alex invested a certain amount to a business and promised to pay him back with 1.8 times his original investment. They agreed to have it compounded monthly within 9 years. What is the nominal rate of interest r in percent?
- 16. Mr John Week borrowed $ 2,400 at 1% per month payable in 24 equal end-of-the month payments. How much money of the loan remains unpaid immediately after he has paid the 12th payment?6. Elmo borrowed $25,000 from the Statler & Waldorf Bank at 12% APR, compounded monthly. The loan is to be repaid in equal monthly payments over a 5 year period. (No statements required for this question. Just find the numbers asked for.) What is the interest payment in the 25th period? Question 2 Part C: Provide the formulas for the calculation of the interest payment in one period, and the remaining balance after n periods (no subscripts or superscripts required). 7. Elmo borrowed $25,000 from the Statler & Waldorf Bank at 12% APR, compounded monthly. The loan is to be repaid in equal monthly. payments over a 5 year period. (No statements required for this question. Just find the numbers asked for.) What is the interest payment in the 25th period? Question 2 Part D: Provide the interest payment in the 25th period.(6) A loan of $20,000 is to be repaid in uniform monthly payments over 3 years. If the interest in 9% per year compounded monthly, what is the amount of unpaid las principal after 24 monthly payments?