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You are paying into a mutual fund that earns
7% compound interest. If you are making an annual
contribution of $14,000, how much will be in the
funds in 25 years?
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- A(n) 16-year bond has a coupon of 6% and is priced to yield 13%. Calculate the price per $1,000 par value using semi-annual compounding. If an investor purchases this bond two months before a scheduled coupon payment, how much accrued interest must be paid to the seller? The price of the bond, PV, is $nothing. (Round to the nearest cent.)In the CF diagram shown below, compute the Future amount F at the end of 6 yrs if i = 6% compounded annualy.If your credit card calculates interest based on17.85% APR, compounded monthly:(a) What are your monthly interest rate and annualeffective interest rate?(b) If your current outstanding balance is $2,500 andyou skip payments for two months, what wouldbe the total balance two months from now?
- j.A house and lot can be acquired by a down payment ofP500,000 and a yearly payment of P100,000 at the end ofeach year for a period of 10 years, starting at the end of 5years from the date of purchase. If money is worth 14%compounded annually, what is the cash price of theproperty? include a non-excel cash flow1. Crystal’s aunt, 44 years old, is evaluating her retirement portfolio. She paid her house off in anticipation of an early retirement. In addition, she has invested wisely in her company’s 406k, a Roth IRA, municipal bonds, and certificates of deposit. She has amassed $292,000 in her diversified portfolio. Today, she has the opportunity to deposit her money at 9% compounded quarterly. Assume she retires at 51 years old. How much will her investment be worth?You own a manufacturing business and are considering the purchase of a labor-saving device. You project that the device will last 12 years and save you $750 per month in labor costs (assume that the savings are realized at the end of each month). At the end of 12 years, you project you can sell the device for a salvage value of $12,000. Assuming that you can earn 9% compounded monthly on your money, what is the value of the device?
- The term of a lease contract are as follows: Annual lease = ₱ 1.50M, first payment upon start of thelease, annual lease increase by 10% each year for 4 years. A single lump sum payment is acceptable atthe start of the lease based on an interest rate of 14 % compounded annually. Find the amount of thislump sum.Determine the periodic deposit. Round up to the nearest dollar. How much of the financial goal comes from deposits and how much comes from interest?Periodic Deposit: $? at the end of each yearRate: 8% compounded annuallyTime: 12 yearsFinancial Goal: $20,000Michelle Passmore is purchasing a $25,000automobile, which is to be paid for in 60 monthlyinstallments of $489.15. What effective annual interest is she paying for this financing arrangement?
- 7. How many years will it take for an investment todouble, if the interest rate is 8% per year,compounded annually? include a cash flowa) Find the Future Value of an annuity for$1000 paid at the end of each year for 3 years assuming interest is compounded annually at 7%? b) Julie Miller will receive the set of cash flows below. What is the Present Value at a discount rate of 10%. Year one 500, year two 500, year three 300, year four 300 and year five 150. c) Perpetuity has no time limit. The present value of $100 perpetuity discounted at 15% is?5. Solve for F, given that P—$1999,99, i=1.43% and n=1 and three-fourths years. 6. A bank charges an interest rate of 7%. An engineer wants to loan an amount ofFhp 1,000,000 to start his construction business from January 06, 2022 to December 30,2022. Determine the difference of future worth of ordinary simple interest and exact simpleinterest.
