Reference no: EM132968969

What is the present value of the following annuity? $2,294 every year at the end of the year for the next 7 years, discounted back to the present at 15.62 percent per year, compounded annually?

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 7.8 percent, compounded annually.

What is the present value of this investment if 7.8 percent per year is the appropriate discount rate?

You have been offered the opportunity to invest in a project that will pay $2,087 per year at the end of years one through three and $13,556 per year at the end of years four and five. If the appropriate discount rate is 11.1 percent per year, what is the present value of this cash flow pattern?

What is the accumulated sum of the following stream of payments? $22,138 every year at the beginning of the year for 10 years, at 9.03 percent, compounded annually.

You have accumulated some money for your retirement. You are going to withdraw $55,188 every year at the beginning of the year for the next 29 years starting from today. How much money have you accumulated for your retirement? Your account pays you 3.39 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 $43,654 for 8 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 7.90 percent of the unpaid balance. What is the amount of the monthly payments?

You plan to buy the house of your dreams in 10 years. You have estimated that the price of the house will be $77,273 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 7.10 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?

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 4.02 percent, compounded annually. How much is this investment worth at the end of year four?

What is the present value of a $704 perpetuity discounted back to the present at 10.71 percent.