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Question;Question 6 Your parents are planning to retire in 18 years. They currently have;? 250,000, and they would like to have ? 1,000,000 when they retire. What;annual rate of interest would they have to earn on their ? 250,000 in order to;reach their goal, assuming they save no more money?;Question 7 What is the future value of a 5-year ordinary annuity that promises;to pay you ? 300 each year? The rate of interest is 7 percent.;Question 8 What is the future value of a 5-year annuity due that promises to;pay out ? 300 each year? Assume that all payments are reinvested at 7% a year;until year 5.;Question 9 A company invests ? 4 million to clear a tract of land and to set;out some young pine trees. The trees will mature in 10 years, at which time the;company plans to sell the forest at an expected price of ? 8 million. What is;company's expected rate of return?Question 10 Rachel wants a;refrigerator that costs ? 12000. She has arranged to borrow the total purchase;price of refrigerator from a finance company at a simple interest rate equal to;12 percent. The loan requires quarterly payments for a period of three years.;If the first payment is due three months after purchasing the refrigerator;what will be the amount of her quarterly payments on the loan?

Paper#51190 | Written in 18-Jul-2015

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