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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?What would you pay for an investment that pays you $32000 at the beginning of each year for the next ten years? Assume that the relevant interest rate for this type of investment is 9%.How much should you pay today for a 10 year annuity that will provide annual payments of $10,000? Assume an interest rate of 4%. PLEASE BREAK IT DOWN
- You expect to receive a one-time payment of $1,000 in 10 years and a second payment of $1,500 in 15 years. The annual interest rate is 3%. If you invest the amount that you'll receive in 10 years, how much money will you have in year 15 (including the cash flow in year 15)?Suppose you plan to deposit $1000 into an account next year, and increase the deposit each year by 5%. How how much will you have in the account after 10 years if the account earns an effective annual return of 9.25%?Suppose that you have $100 to invest for a period of 5 years at an interest rate of 10% per year. How much will you have accumulated at the end of this time period?
- You will receive a cash payment of $6.4 in 4 years. If the relevant interest rate is 16.4%, how much is it worth today? Answer:You are going to receive a payment of $80 at the end of each year for the next 12 years. If you invest each of those amounts at the same interest rate, then what annual compound interest rate must you earn in th order to have $1,930.65 at the end of the 12 year?nAn investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If the interest rate earned on the investment is 8 percent, what is its present value? What is its future value?
- Suppose your client wishes to purchase an annuity that pays $80,000 each year for 6 years, with the first payment 4 years from now. At an interest rate of 8%, how much would the client need to invest now? Please round your answer to the nearest hundredth.Suppose that you will receive annual payments of $16,500 for a period of 10 years. The first payment will be made 6 years from now. If the interest rate is 7%, what is the present value of this stream of payments?How much do you have to deposit today so that exactly 10 years from now you can withdraw $10,000 a year for the next five years? Assume an interest rate of 6%
