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# [Solved] Assignment 219090

Assignment Details

Question
1-) How many years will it take \$2 million to grow to \$6.80 million with an annual interest rate of 7
percent? (Do not round intermediate calculations and round your final answer to 2 decimal
places.)
years Period 2-) What is the value in year 15 of a \$310 cash flow made in year 9 if interest rates are 11
percent? (Do not round intermediate calculations and round your final answer to 2 decimal
places.)
\$ Value in year 15 3-) What would be more valuable, receiving \$700 today or receiving \$850 in three years if interest
rates are 8 percent? Which one a or b? a) Receiving \$700 today
b) Receiving \$850 in future
4-) Consider a \$5,900 deposit earning 10 percent interest per year for 10 years.
What is the future value? (Do not round intermediate calculations and round your final answer to 2
decimal places.)
Future value \$ How much total interest is earned on the original deposit? (Do not round intermediate calculations
Total interest earned \$ How much is interest earned on interest? (Do not round intermediate calculations and round your
final answer to 2 decimal places.)
Interest earned on the interest \$ 5-) What is the value in year 4 of a \$2,000 cash flow made in year 6 if interest rates are 10
percent? (Do not round intermediate calculations and round your final answer to 2 decimal
places.)
Value in year 4 \$ 6-) A perpetuity pays \$160 per year and interest rates are 8.1 percent. How much would its value
change if interest rates increased to 9.6 percent? (Round your answer to 2 decimal places.)
Change in value \$ Did the value increase or decrease?
Increase
Decrease 7-) You are looking to buy a car. You can afford \$630 in monthly payments for five years. In addition
to the loan, you can make a \$730 down payment. If interest rates are 8.50 percent APR, what price
of car can you afford? (Do not round intermediate calculations and round your final answer to 2
decimal places.)
Present value \$ 8-)Assume that you contribute \$260 per month to a retirement plan for 20 years. Then you are able
to increase the contribution to \$520 per month for another 30 years. Given a 7 percent interest
rate, what is the value of your retirement plan after the 50 years? (Do not round intermediate
\$ Future value of multiple annuities 9-) 5-What annual interest rate would you need to earn if you wanted a \$1,000 per month
contribution to grow to \$82,500 in six years? (Do not round intermediate calculations and round