What's the present value, when interest rates are 8.5 percent, of a $135 payment made every year forever?â
What's the present value of a $910 annuity payment over four years if interest rates are 8 percent?
Compute the present value of a $3,800 deposit in year 1 and another $3,300 deposit at the end of year 3 if interest rates are 10 percent.
What is the future value of a $920 annuity payment over six years if interest rates are 10 percent?
Compute the future value in year 8 of a $2,300 deposit in year 1 and another $1,800 deposit at the end of year 3 using a 10 percent interest rate
How long will it take $2,000 to reach $4,400 when it grows at 11 percent per year?
What's the present value, when interest rates are 8.5 percent, of a $135 payment made every year forever?â
| What's the present value of a $910 annuity payment over four years if interest rates are 8 percent?
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Related questions
| Rachel purchased a $23,000 car three years ago using a 9 percent, 5-year loan. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan. |
| What is the minimum price Rachel would need to receive for her car? Given a 7 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,350, $1,550, $1,550, and $1,850. |
| Assume that you contribute $320 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $640 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 50 years?
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| a. | If the deposits are made at the beginning of the year and earn an interest rate of 8 percent, what will be the amount in the retirement fund at the end of year 10? |
| b. | Instead of a lump sum, you wish to receive annuities for the next 20 years (years 11 through 30). What is the constant annual payment you expect to receive at the beginning of each year if you assume an interest rate of 8 percent during the distribution period? |
| c. | Repeat parts (a) and (b) above assuming earning rates of 7 percent and 9 percent during the deposit period and earning rates of 7 percent and 9 percent during the distribution period. |
| Deposit Period | Value at 10 Years | Distribution Period | Annual payment |
| 7 percent | $ | 7 percent | $ |
| 9 percent | $ | ||
| 9 percent | $ | 7 percent | $ |
| 9 percent | $ |
