Given a 3 percent interest rate, compute the year 6 future value of deposits made in...

Given a 3 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,700, $1,900, $1,900, and $2,200, respectively.

Expert Solution

Year	Cash flow	Future value of 1	Future value of cash flow
a	b	c=1.03^(6-a)	d=b*c
1	$ 1,700	1.15927	$ 1,970.77
2	$ 1,900	1.12551	$ 2,138.47
3	$ 1,900	1.09273	$ 2,076.18
4	$ 2,200	1.06090	$ 2,333.98

Total			$ 8,519.39

jeff jeffy answered 1 month ago

6. Given a six (6) percent interest rate per year, compute the year seven (7) future...

6. Given a six (6) percent interest rate per year, compute the year seven (7) future value at year end if deposits of $1,000 and $1,500 are made at end of years two (2) and three (3) respectively, and a withdrawal of $500 is made at end of year five (5). Group of answer choices A. $5,918.91 B. $3,201.48 C. $2,992.04 D. $2,500.00 E. $2,670.14

Given a 14 percent interest rate, compute the present value of deposits made in in the amount of $1,000 in year 1, $1,385 in year 2, $1,270 in year 3, and $1,450 in year 4.

Assuming that the current interest rate is 3 percent, compute the present value of a five-year,...

Assuming that the current interest rate is 3 percent, compute the present value of a five-year, 5 percent coupon bond with a face value of $1,000. What happens when the interest rate goes to 4 percent? What happens when the interest rate goes to 2 percent? Instructions: Enter your responses rounded to the nearest penny (two decimal places). PV at an interest rate of 3% = $ PV at an interest rate of 4% = $ The present value (Click to...

6) With a 10 percent interest rate on dollar deposits, and an expected appreciation of 7...

6) With a 10 percent interest rate on dollar deposits, and an expected appreciation of 7 percent over the coming year, the expected return on dollar deposits in terms of the dollar is A) 3 percent. B) 10 percent. C) 13.5 percent. D) 17 percent. 7) The expected return on dollar deposits in terms of foreign currency can be written as the ________ of the interest rate on dollar deposits and the expected appreciation of the dollar. A) ratio B)...

67. a. Compute the Future value for Principal value of $17,500 with annual interest rate 7.75%...

67. a. Compute the Future value for Principal value of $17,500 with annual interest rate 7.75% compounded monthly at the end of 8 years. a. $30,495.25 b. $31,329.20 c. $32,466.45 d. $33,110.50 b. Alec and Lexi compute that they will need $20,000 in 4years to build to remodel their kitchen. How much should they invest now at 5.5% interest compounded quarterly to have the $20,000 in 4years? a. $ 13,328.60 b. $ 11,035.10 c. $13,071.10 d. $16,074.45

Given an interest rate of 6.95 percent per year, what is the value at Year 9...

Given an interest rate of 6.95 percent per year, what is the value at Year 9 of a perpetual stream $3,700 payments that begin at Year 20? (Do not round intermediate calculations and round your answer to 2 decimal places , e.g., 32.16.)

A basic arm is made for $200000 at an initial interest rate of 6 percent for...

A basic arm is made for $200000 at an initial interest rate of 6 percent for 30 years with an annual reset date. The borrower believes that the interest rate at the beginning of year 2 will increase to 7 percent. (a) Assuming that a fully amortizing loan is made, what will the monthly payments be during year 1? (b) Based on (a), what will the loan balance be at the end of year 1? (c) Given that the interest...

Q1: For each of the following: Compute the Future value (FV) Present Value Years Interest rate...

Q1: For each of the following: Compute the Future value (FV) Present Value Years Interest rate Future Value $ 3,159 84,53 89,305 T 16 19 26 13% Y 9 5 Compute Present Value 15 8 13 25 7% 11 10 13 $ 17,328 41,517 7903,82 647,816 Compute the interest rate Present Value Years Interest rate Future Value $ 715 905 15,000 70,300 11 8 23 16 $ 1,381 1,718 141,832 312,815 Q2: Compute the Future value of $ 1,000 continuously...

Payment Years Interest Rate (Annual) Future Value (Payment made on last day of period) Future Value...

Payment Years Interest Rate (Annual) Future Value (Payment made on last day of period) Future Value (Payment made on first day of period) $283 15 15 % 6,155 10 12 76,084 7 14 168,932 11 5 Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2...

Given an interest rate of 6% per year compounded annually, what is the value at the...

Given an interest rate of 6% per year compounded annually, what is the value at the date t = 0 of a perpetual stream of $2,000 annual payments that begin at date t = 10? (approx. to nearest integer value) Select one: a. $19730 b. $20914 c. $18613 d. $18000

Question