Question

PLEASE ANSWER ALL

#5

Derek will deposit $2,250.00 per year into an account starting today and ending in year 5.00. The account that earns 11.00%. How much will be in the account 5.0 years from today?

#6

Derek has the opportunity to buy a money machine today. The money machine will pay Derek $16,744.00 exactly 17.00 years from today. Assuming that Derek believes the appropriate discount rate is 10.00%, how much is he willing to pay for this money machine?

#7

Derek will deposit $4,871.00 per year for 30.00 years into an account that earns 4.00%, The first deposit is made next year. How much will be in the account 35.00 years from today?

#8

Derek will deposit $5,331.00 per year for 13.00 years into an account that earns 14.00%, The first deposit is made next year. He has $13,144.00 in his account today. How much will be in the account 42.00 years from today?

Answer 1

Q No
5	Amount after 5 years	$17,803.93
6	Amount that he is willing to pay	$3,312.71
7	Amount after 30 years	$273,189.73
	Amount after 35 years	$332,377.08
8	Amount after 13 years	$243,256.87
	Amount after 42 years from today	$10,871,908.80

WORKINGS:

Following are the Excel formulae used for computation