6. What is the present value of a 8-year ordinary annuity with annual payments of $430, evaluated at a 15 percent interest rate? Round your answer to 2 decimal places; for example 2345.25. 7. A real estate investment has the following expected cash flows: Year Cash Flows 1 $10,000 2 18,000 3 4 22,000 27,000 The discount rate is 7 percent. What is the investment's present value? Round your answer to 2 decimal places; for example 2345.25. 8. Michael wants to have $50,000 in 11 years on a savings plan that requires monthly contributions. If he can earn 9 percent APR with monthly compounding on the savings plan, what is the amount that he will have to invest every month for the next 11 years? Round it to two decimal places and do not include the $ sign, e.g ., 1234.56.

6. What is the present value of a 8-year ordinary annuity with annual payments of $430, evaluated at a 15 percent interest rate? Round your answer to 2 decimal places; for example 2345.25. 7. A real estate investment has the following expected cash flows: Year Cash Flows 1 $10,000 2 18,000 3 4 22,000 27,000 The discount rate is 7 percent. What is the investment's present value? Round your answer to 2 decimal places; for example 2345.25. 8. Michael wants to have $50,000 in 11 years on a savings plan that requires monthly contributions. If he can earn 9 percent APR with monthly compounding on the savings plan, what is the amount that he will have to invest every month for the next 11 years? Round it to two decimal places and do not include the $ sign, e.g ., 1234.56.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

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