Your uncle is offering you a deal: - To pay you at the end of every month, 1000EUR, during 15 years with a growing rate of 2% annually and an interest rate of 5% during the whole period. - Or paying you right now 20,000EUR Confirm which option you would choose and why
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- 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 annuityPeter Lynchpin wants to sell you an investment contract that pays equal $13,500 amounts at the end of each of the next 19 years. If you require an effective annual return of 10 percent on this investment, how much will you pay for the contract today?Don Draper has signed a contract that will pay him $50,000 at the end of each year for the next 10 years, plus an additional $120,000 at the end of year 10. If 8% is the appropriate discount rate, what is the present value of this contract?
- TA Corp. has a consulting contract with a firm that states that he will receive annual payments of $50,000 a year for five years with the first payment due today. What is the current value of this contract if the discount rate is 8.4 percent?Your uncle will sell you his bicycle shop for $220,000, with "seller financing," at a 5.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your monthly payments be?Talitha will sell her bicycle shop to you for R250 000, with seller financing at a 6% nominal annual rate. The terms of the loan will require you to make 12 equal end-of-month payments per year for four years, and then make an additional final (balloon) payment of R50 000 at the end of the last month. What will your equal monthly payments be?
- Your employer offers a401(k)plan with a45%match, and you set a goal of retiring in 27 years with an amount of money which has the same buying power that1.4million dollars has today. If the account earns an annual interest rate of1.5%and the expected annual rate of inflation is1.6%, how much should YOU contribute each month to the401(k)? Round your answer to the nearest dollar.You plan to make a trip that costs you approximately ¢ 4,000,000.00, for this you deposit today in the Mutual Alajuela the sum of ¢ 1,000,000.00 with an interest of 10% per annum capitalizable quarterly, a year you make another deposit as is added to the first one, in that moment they increase the rate by two percentage points and pass it on to monthly compounding. At the beginning of the third year, he was going to make another deposit for the same amount, but rather he had an emergency and took out ¢ 400,000.00 to attend to it. solve a. In what time will accumulate the sum required for the trip.b. In what time would you reach the desired sum if you had not made the withdrawal.Your uncle will sell you his bicycle shop for $255,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 5 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be? a. $4,929.86 b. $4,721.85 c. $4,213.22 d. $4,192.26 e. $4,905.34
- You are offered a $2,800,000 retirement package to be given in $100,000 payments at the end of each of the next 28 years. You are also given the option of accepting a $1,150,000 lump sum payment now. Interest rates are at 8.5% over the next 28 years. Which is a better option? the offered annual payments of $100,000the lump sum of $1,150,000 they are the samecannot be determinedYou are planning to retire in 25 years time. Immediately after your retirement, you wish to go for a round the world trip lasting one year. Your monthly expenses for the trip work out to be £9000 and the first withdrawal will be made at the end of the month after your retirement. You also want to provide yourself with £35,000 a year for next 15 years on your return from the world trip. How much you should save every month to provide for the above if the effective rate of interest is 14% per annum.You are planning to retire in 25 years time. Immediately after your retirement, you wish to go for a round the world trip lasting one year. Your monthly expenses for the trip work out to be £9000 and the first withdrawal will be made at the end of the month after your retirement. You also want to provide yourself with £35,000 a year for next 15 years on your return from the world trip. How much you should save every month to provide for the above if the effective rate of interest is 14% per annum.Your firm has a retirement plan that matches all employee contributions with employer contributions on a two-to-one basis. That is if an employee contributes £1,000 per year, the company will add £2,000 to make the total contribution £3,000. The firm guarantees a fixed 6 per cent return on the funds. Alternatively, you can provide for retirement yourself, and you think you can earn 9 per cent on your money. The first contribution will be made one year from today. At that time and every year…
