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- You have found three investment choices for a one-year deposit: 11% APR compounded monthly, 9% APR compounded annually, and 10% APR compounded daily Compute the EAR for each me choice. (Assume that there are 365 days in the year) CEED For the case of 11% APR compounded monthly the EAR is% (Round to three decimal places) For the case of 9% APR compounded annually the EAR is (Round to three decimal places) For the case of 10% APR compounded daily the EAR is % (Round to three decimal places)You have found three investment choices for a one-year deposit: 10% APR compounded monthly, 10% APR compounded annually, and 9% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.)For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (/= interest rate, and n= number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) 1. $ 2 3 4. 15 Present Value Answer is complete but not entirely correct. Annuity Amount 2.200 145,000 190,000 72.523 45,787 8,784 558,865 480,945 520,000 240,000 8% 1.0% 9% 2.5% 10% n= 5 4 30 8 4
- You are considering an investment account with one of the advertised commercial deposits from SyncFuture Bank. SynFuture's CD pays 8% APR, compounded semiannually. What is the investment's effective annual rate (rEAR)? (Round the answer to four decimal points.)For each of the following situations involving annuities, solve for the unknown Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (=interest rate, and n number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. EVA of $1. PVA of $1, EVAD of $1 and PVAD of $1) 1 2 3. 4. 5 Present Value 368,041 714,457 600,000 200,000 Annuity Amount $ 4,000 105,000 110.000 96,048 8% 10% 10% n= 5 4 9 4For each of the following situations involving annulties, solve for the unknown. Assume that interest is compounded annually and that all annulty amounts are received at the end of each period. (/= Interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. 5. Present Value 248, 196 442,750 650,000 175,000 Annuity Amount $ 5,000 80,000 60,000 155,040 8% 11% 10% n = 5 4 10 4
- If 5 deposits of $600 each are made into an account at the end of years 9, 10, 11, 12, and 13, what will be the balance in the account at the end of year 25, if the account offers a stated annual rate of interest r = 12 percent compounded annually? [Optional: Try using each of the four annuity formulas to solve this problem and then verify the result using repeated lump sum calculations.]Suppose your firm has an obligation to pay an annuity with 18 annual payments of $80,000. The first payment is due two years from today. Assume all interest rates are 11.5%. Write down the information requested on your answer sheet. What is the duration of the obligation? Please carry out intermediate steps further but in your final answer be accurate to and express your FINAL answer as accurate to the nearest 4 decimal places. Please do NOT answer MORE than 4 decimal places...round your answer to the nearest 4 decimal places.If you deposit $P into a savings account that earns interest at a rate of i% per month for n years, the future worth in year n is represented by all of the following equations, except: (a) F = $P(F∕P, effective i/month, 12n) (b) F = $P(F∕P, effective i/quarter, 3n) (c) F = $P(F∕P, effective i/6-month, 2n) (d) F = $P(F∕P, effective i/year, n)
- Find i (the rate period) and n (the number of periods) for the following annuity Monthly deposits of $265 are made for 7 years into an annuity that pays 6.5% compounded monthly i = (type integer or rounded to four decimal places as needed) n =Suppose you make equal quarterly deposits of $2,500 into a fund that pays interest at a rate of 5% compounded monthly. Find the balance at the end of year 3. Hint: You will need an effective interest rate in your calculations. As a proportion, round this value to 4 places after the decimal when you use this in subsequent calculations. Note: Note: When entering your answer, do not use any dollar symbols or any other units. Enter only the value rounded to the nearest integer (nearest dollar). Also, for longer values, do not use any commas.Find the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposits. (Round your answer to the nearest cent.) Amount of Deposit Frequency Rate Time m n annually 1% 30 уг $800 Need Help? Read It %24