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What is the relationship between present and future value? Please help in this response. Thanks.

These are just exercises.

Tuesday, 26 August 2014 by

These are just exercises. I need help with figuring out the formulas on all 5 questions. Thanks! (Complete problem also found in attachment) 1. Annuity Values. a. What is the present value of a 3-year annuity of $100 if the discount rate is 6 percent? b. What is the present value of the annuity in

What factors should you consider before deciding which company to buy?

Jane’s goal is to have an investment grow to $100000 in 20 years. Her strategy is to make lump-sum contributions in years 0, 5, 10, and 15. That is, in Year 0, she will contribute $X, in year 5 she will contribute $x, etc. where $X is the same at each contribution. Earning an effective

Company makes a deposit of $600,000 on 1/1/01 and a deposit of $400,000 on 1/1/03 into an account that pays interst at 6% compounded semiannually. On 1/1/04, Company transfers the entire balance in the account to a new account that pays interest at 8% compounded quarterly. Company then deposits %500,000 into the account on 1/1/05.

I have two questions but question 2 has three parts: 1) Using the Rule of 72, how much would $5,000 accumalte to after 27 years if the rate of return is 8% ? 2 a) What woudl the value of a $1000 face value bond with a stated interest rate of 9% return and a

Using a calculator can you show me step by step how I can calculate a monthly mortgage payment. For example the mortgage is $120K, the rate is 4.5% and the term is 360 months. Further suppose I decide to pay off the mortgage at year 5, what would the amount owed be? I have read

37. Given some amount to be received several years in the future, if the interest rate increases, the present value of the future amount will be (pick the best answer) 1 higher 2 lower 3 stay the same 4 cannot tell 5 variable

rue/False

Tuesday, 26 August 2014 by

87. True/False In part because money has time value, cash sales are always more profitable and more valuable than credit sales.

What are the PV and FV of a 10-year ordinary annuity of $500 at 10% and PV and FV of the same annuity if it bacomes an annuity due?

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