A loan of $60,000 is due 10 years from today. The borrower wants to make annual payments at the end of each year into a sinking fund that will earn compound interest at an annual rate of 10 percent. What will the annual payments have to be? Suppose that the monthly payments earn 10 percent interest, compounded monthly. What would the annual payments have to be?

Q: An investment offers $12,000 per year for 20 years, with the first payment occurring one year from…

A: The time value of money concept holds the utmost relevance while determining the future value and…

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

A: Formulas: Future value = Present value *(1+rate)^years

Q: If you invest $1,000 each month for five years, what will be the value of the investment after five…

A: The below formula can be used to calculate future value:

Q: A loan of $50,000 is due 10 years from today. The borrower wants to make monthly payments at the end…

A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…

Q: An investment of $100,000 today will make advance quarterly payments of $4,000. If the annuity can…

A: We need to use NPER formula in excel to calculate number of periods to depleted annuity.  Formula is…

Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…

A: Simple Annuity due refers to the payment system where amount paid or received in eac period is not…

Q: An investment will pay you $10,000 in 10 years and it also will pay you $400 at the end of each of…

A: An annuity refers to a series of payments that regularly made at equal intervals. Present value (PV)…

Q: What is the future value four years from now of each of the following cash-flow streams if money can…

A: Future value is the worth of a certain deposit made today at a specific time in future.

Q: An investment offers $6,300 per year, with the first payment occurring one year from now. The…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You have $14,000 in the bank today.  How much would you need to save each year in order to…

A: Current amount (C) = $14000 Let the annual saving = A r = 10% n = 30 years Accumulated value = $3…

Q: If you were to be promised $10,000 due in one year when interest rates are 5-percent, your…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Suppose that you need to take out a loan today and anticipate being able to pay back $50,000 sixteen…

A: Let the loan amount = X Amount to payback (A) = $50000 n = 16 years

Q: Given an interest rate of 6.0 percent per year, what is the current value of a perpetual stream of…

A: Value of the perpetuity in 4 years will be = Annual amount / interest rate = $ 36,000 / 0.06 = $…

Q: Suppose you will need $20,000 in 3 years. How much must you invest per month in order to have…

A: Present value is the current worth of the amount that is expected to be received in future date.

Q: If you put $2,500 in a savings account at the end of each year for 10 years and then allow the…

A: Yearly payment(PMT) is $2,500 Time period(initial) = 10 years Rate 12% per annum Futute value of…

Q: How much will have to be invested at the beginning of each year at 7%, compounded annually, to pay…

A: Future value = Present value (1 + Rate of interest)number of years

Q: Using the formula for an annuity, what would be the monthly payments on a 5-year fixed-rate car loan…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: Find how much money needs to be deposited now into an account to obtain $40,000 in 5 years if the…

A: Future value (FV) = $40,000 Period (n) = 5 Years Interest rate (r) = 7%

Q: A new roof will cost $10,000. It will be installed in 20 years. If the interest rate is 8% per year,…

A: The above given problem is based on the Time value of money. The time value of money refers to the…

Q: If you put up $30,000 today in exchange for a 6.50 percent, 15-year annuity, what will the annual…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: An annuity will make a payment every two months, starting two months from now. If the yield rate is…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: How much money do you need now to set up a perpetuity that pays $2,000 at the end of each quarter if…

A: In finance, there are two types of series of cash flows, i.e., an annuity, and perpetuity. An…

Q: You are valuing an investment that will pay you $25,000 per year for the first 7 years, $29,000 per…

A: Annual discount  rate is 13% Amount paid for first 7 years is $25,000 Amount paid for next 12 years…

Q: Suppose an annuity will pay $14,000 at the beginning of each year for the next 5 years. How much…

A: Annual payment (P) = $14,000 Interest rate (r) = 6.5% Period (n) = 5 Years

Q: An investment company wants to establish a sinking fund to pay off debts of $85 million which come…

A: Formulas: Future value = amount*((1+rate)^years - 1) / Rate

Q: An investment will provide you with $100 at the end of each year for the next 10 years. What is the…

A: Time period is 10years Discount rate is 8% Annuity amount per year is $100 To Find: Present Value…

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: Using excel FV function

Q: Assume the required reserve ratio is 10 percent and that the commercial banking system has $110…

A: The question is based on the concept of banking reserve ratio . The reserve ratio in bank is…

Q: What is the maximum amount you should pay today for an investment that pays a single future cash…

A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…

Q: An investment will pay you $10,000 in 10 years, and it also will pay you $400 at the end of each of…

A: The amount to be paid for the investment is calculated as the present value of annuity plus the…

Q: You are considering an investment that will pay you $1,200 per month for three years. The first…

A: An annuity is a series of equal payments occurring at regular intervals. The present value is…

Q: How many years will take $10,000 to grow to $20,000 if bank offered rate is 10% per year compounded…

A: Information Provided: Present value = $10,000 Future value = $20,000 Interest rate = 10% semi -…

Q: an investment offers 3850 per year for 15 years, with the first payment occurring one year from now.…

A: Here, Annuity Amount is 3850 Interest Rate is 6%

Q: A. What is the value of the annuity 5 years from now? B. What is the current value of the annuity?

A: Solution:- Given, A 5-year annuity of ten = $50,000 semi annul payments  Begin 9 years from now,…

Q: a. You need $17,000 in five years but you only have $12,000 now. At what interest rate must you…

A: As per guidelines, I am supposed to answer 1 question at a time. As the question is not specifically…

Q: You are looking at an investment that will make annual payments of $28,000, $32,000, $66,000, and…

A: Cahs flow 1 28000 Cash flow 2  32000 Cash flow 3  66000  Cash flow 4  99000  Discount rate…

Q: How much will be in a high-yield account at the National Bank of Arizona 12 years from now if you…

A: To identify the amount which will be receiving in a high-yield account at the National Bank of…

Q: Suppose an annuity will pay $11,000 at the beginning of each year for the next 7 years. How much…

A: Annuity refers to the periodic payment which can be made monthly, quarterly, semi-annually or…

Q: If you deposit $5,000 4 years from today, how much will you be able to withdraw 10 years from today…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: How much do you have to deposit today so that beginning 14 years  from now you can withdraw 15,000 a…

A: An annuity due is a sequence of periodic cash flows starting at the beginning of the first period.…

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 12 years with…

A: We need to use loan amortisation formula to calculate unpaid balance of loan Unpaid balance(P)…

Q: A. A person wants to generate fourintallments of $1,000 in the following four years. How much money…

A: Discounting the future cashflows provides the present value.

Q: An investment product promises semi-annual cashflows of $3,500 for the next 5 years. If the stated…

A: In this we have to calculate semiannual effective interest rate and than calculate the present value…

Q: If you need 6,000 5 years from now, how much of a deposit must you make in your savings account…

A: Future value (FV) = 6000 Number of annual payments (n) = 5 Annual interest rate (r) = 8%