Intro Find the present values of these annuities due. Part 1 What is the present value of $6,000 per quarter for 8 years with an annual interest rate of 6% (APR with quarterly compounding)? 0+ decimals Submit Intro You took out a loan to buy a new car. The monthly interest rate on the loan is 2%. You have to pay $240 every month for 60 months. Part 1 What is the present value of the cash flows if it's an annuity due? 0+ decimals Submit Intro You just turned 20 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $100,000 per year in retirement, starting on your 65th birthday. You expect to earn a return of 8% on your investments every year. Part 1 What is the total present value (as of your 65th birthday) of the withdrawals you expect to make in retirement? 0+ decimals Submit

Intro Find the present values of these annuities due. Part 1 What is the present value of $6,000 per quarter for 8 years with an annual interest rate of 6% (APR with quarterly compounding)? 0+ decimals Submit Intro You took out a loan to buy a new car. The monthly interest rate on the loan is 2%. You have to pay $240 every month for 60 months. Part 1 What is the present value of the cash flows if it's an annuity due? 0+ decimals Submit Intro You just turned 20 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $100,000 per year in retirement, starting on your 65th birthday. You expect to earn a return of 8% on your investments every year. Part 1 What is the total present value (as of your 65th birthday) of the withdrawals you expect to make in retirement? 0+ decimals Submit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Similar questions

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 annuity
You put $600 in the bank for 3 years at 15%. 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 third year. B. Use the future value of $1 table In Appendix B and verify 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?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?