Reference no: EM132948236

Questions -

What is the present value of a $848 perpetuity discounted back to the present at 7.99 percent. You have just purchased an investment that generates the cash flows shown below for the next four years. You are able reinvest these cash flows at 9.94 percent, compounded annually. How much is this investment worth at the end of year four?

You plan to buy the house of your dreams in 7 years. You have estimated that the price of the house will be $76,026 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 12.61 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?

For the next 5 years, you decide to place $4,526 in equal year-end deposits into a savings account earning 4.49 percent per year. How much money will be in the account at the end of that time period?

You have accumulated some money for your retirement. You are going to withdraw $50,001 every year at the beginning of the year for the next 22 years starting from today. How much money have you accumulated for your retirement? Your account pays you 11.06 percent per year, compounded annually. To answer this question, you have to find the present value of these cash flows.

A commercial bank will loan you $57,603 for 6 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 19.95 percent of the unpaid balance. What is the amount of the monthly payments?