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##### Finance Assignment Multiple Problems

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Question;What is the implied annual rate if you deposit;\$750 and receive \$2,000 in 8 years, assuming interest is compounded quarterly? How many months it will take to grow your money;from \$10,250 to \$25,000 if you can earn an interest of 8% compounded monthly? How;many years will it take?How many years it will take to grow your money;from \$3308 to \$9537 if you can earn an interest of 15% compounded quarterly?The difference between an ordinary annuity and;an annuity due is the;Timing of the annuity payments.Interest rate applied to the annuity payments.Number of annuity payments.Amount of each annuity payment.;Which one of the following is an annuity due?;\$225 paid at the end of each monthly period for;an infinite period of time\$100 paid at the end of each monthly period for;one year\$225 paid forever\$600 paid at the beginning of every quarter for;five years, starting today;What is the present value of \$150 received at;the beginning of each year for 16 years? The first payment is received today.;Use a discount rate of 9%.What is the present value of \$250 received at;the beginning of each year for 21 years? Assume that the first payment is;received today. Use a discount rate of 12%What is the future value of semi-annual payments;of \$6,500 for eight years at 12 percent?You are considering an investment which would;entail \$5,000 payments each year for 20 years. The investment will pay 7;percent interest. How much will this investment be worth at the end of the 20;years?Kelly;starting setting aside funds six years ago to buy some new equipment for her;firm. She has saved \$2,000 each quarter and earned an average rate of return of;7.5 percent. How much money does she currently have saved for this purpose?Today;you are purchasing a \$85,000 20-year car loan at 6 percent. You will pay;annually at the end of each year. What is the amount of each payment?You;just won a lottery that will pay you \$2,500 a year for twenty years. You will;receive your first payment today. If you can earn 8 percent on your money, what;are your winnings worth to you today? (Note that since you will receive your;first payment today, it is an annuity due problem).

Paper#49817 | Written in 18-Jul-2015

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