The present value of y dollars after x years at 15% continu- ous interest is f (x, y) = ye-0.15x, Sketch some sample level curves. (Economists call this collection of level curves a dis- count system.)
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- A mutual fund has a rate of return for five years of 10%, 14%, 10%, and 22% . Calculate the geometric mean. Round to the nearest tenth of a percent.A company is considering a new manufacturing process. It knows that the rate of savings (in dollars per year) from the process will be about S(t)-3000(1+4) where t is the number of years the process has been in use. Find the total savings during the first year Find the total savings during the first 7 years The total savings during the first year is (Simplify your answer.)A state lottery gives a winner the choice of receiving the winning amount in equal monthly payments for 20 years or receiving a lump sum equal to the present value of an annuity with future value equal to the winnings. The winner selecting monthly payments will receive $4,000,000/240 = $16,666.67 each month for each million dollars of winnings. (Round your final answers to two decimal places.) (a) Find the present value of an annuity with monthly payments of $16,666.67, at an Interest rate of 5.2% for 20 years, for the winner who wants a lump-sum payment. $ X (b) In order for the lottery to be more profitable, it is decided to pay the winnings in equal monthly payments for 25 years. Find the monthly payments of $4 million in winnings. $ Find the present value of an annuity with those monthly payments at 5.2% for 25 years. $
- Suppose a person has a total credit card debt of $1,500$1,500 that has a 7%7% yearly interest rate. This person also has a savings account with $2,500$2,500 that pays 2%2% interest per year. Despite the net loss, the person keeps both.Calculate how many times the person appreciates the $1$1 of savings more than $1$1 of credit card debt if the person relates similarly to both values of percent paid and received. Enter your answer in the box below and round to two decimal places if necessary.It is likely that airplane tickets will increase 5% in each of the next 4 years. The cost of a plane ticket at the end of the first year will be $10571. How much money would need to be placed in a savings account now to have money to pay for a trip at the end of each year for the next 4 years? Assume the savings account pays 2% annual interest. Round your answer to 2 decimal places. Add your answerYou have agreed that you will pay $50/month, in today's dollars, for cell service for the next three years. From the statements below, select the one that is the most accurate. The $50 monthly payments are real dollars. O The $50 monthly payments are both actual and real dollars. The $50 monthly payments are actual dollars. None of these statements are true.
- Trevor's starting salary at his new job is $40,000. His company gives a performance raise of 5% each year. If Trevor continues in the same position and always receives the performance raise, in how many years will he double his salary?Present value is the value in today's dollars of funds to be paid or recelived in the future. If the current interest rate is 8%, then the present value of $1,000 to be received in7 years is $ (Enter your response rounded to two decimal places.)To make CDs look more attractive as an investment than they really are, some banks advertise that their rates are higher than their competitors' rates; however, the fine print says that the rate is based on simple interest. If you were to deposit $16,000 at 10.00% per year simple interest in a CD, what compound interest rate would yield the same amount of money in 3 years? (Round the final answer to three decimal places.) The compound interest rate that would yield the same amount of money in 3 years is % per year.
- is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 1% is $. (Round your response to the neareast two decimal place) If a loan is paid after two years, and the amount $1000 is to be paid then with a corresponding 2% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place) Next 11:41 AMYou deposit $6000 into an 7% account today. At the end of two years, you will deposit another $2500. Five years from today, you plan a $8000 purchase. How much is left in the account two years after the purchase? Please present the procedures of your calculation.Is it possible to write it down in fraction so I can understand the question better? And can you indicate the step by step process of the fraction?