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Please answer these two questions. Thank you!
1. Determine the
2. Determine the number of years a uniform annual deposit of size 1M to accumulate to 10 times the size of a single deposit at a rate of return of 10% per year. Answer as a whole number.
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Answer the following Compound Interest problem using the provided formula ONLY. Show your complete solution. 7. Compound Interest A. If the sum of P 12,000 (pesos) is deposited in an account earning interest rate of 9% compounded quarterly, what will it become after 1 year? B. In the previous problem, what is the effective rate? C. What is then the equivalent nominal interest rate if compounded monthly?Suppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11 percent per year. Requirement 1: What is the present value of the payments if they are in the form of an ordinary (a)annuity (cash flow starts at the end of the first compounding period)? (Click to select) (b) What is the present value if the payments are an annuity due (cash flow starts at the beginning of the first compounding period)? (Click to select) Requirement 2: (a)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an ordinary annuity? (Click to select) (b)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an annuity due? (Click to select)
- Classify the financial problem. Assume a 9% interest rate compounded annually. What annual deposit is necessary to give $10,000 in 6 years? A.future valueB.amortization C.sinking fundD.present valueE.ordinary annuity Answer the question. (Round your answer to the nearest cent.)1. Suppose a deposit of R dollars is made at the end of each year, and assume an APR of r% compounding continuously. (a) If we invest like this for 3 years, what is the value of the account after the third year? (b) If we are making these payments for 3 years, how much money must we invest today to cover the payments? (c) If we make these payments in perpetuity, find a formula which describes the amount of principal we must invest today to cover all future payments. (d) If we invest like this for three years, but instead use an account with an APR s% compounded weekly, determine s so that this second account has the same value as your answer in part (a) after three years.1. You deposit NOK 250,000 in a savings account. The bank offers 0.25% nominal annual interest rate. How long do you have to leave the money in the account before you have NOK 260,000 in the account? a) At quarterly interest? b) By continuous interest? c) What must the interest rate be if you want to reach the savings target of 10 years by annual return?
- What is the present value of a cash payment of $1.2 that you will receive in 5.3 years if the interest rate is 6.5%? Round to 2 decimal places. Include dollar signs ($) and percents (%) as appropriate.Suppose that you are about to borrow $10,000 from a bank. Suppose you will be repaying using end-of-year annual payments. What will be your annual uniform payment over 8 years with 10% nominal interest compounded monthly? What will be your annual uniform payment over 7 years with 10% nominal interest compounded continuously?May I ask for an explanation and solution to the question for a better understanding. Thank you! 8. Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is compounded semiannually. If you make consecutive semi-annual deposits of P500 each, with the first deposit being made today, what will your balance be at the end of Year 5? a. P6,590.40 b. P881.17 c. P440.59 d. P1,762.34
- Suppose we invest £100,000 at a semi-annually compounded interest rate of 6% for 1 year. What are the gross and net returns? Do the same if this was a monthly compounded rate and a continuously compounded rate. Compare the three net returns to the interest rate. Can you explain the ordering of these 4 quantities?Suppose you have a k5000 bank deposits. The interest rate is 6% compounded quarterly for 1 year. What is the effective annual interest rate (EAR)?Consider a $5,000 deposit earning 10 percent interest per year for ten years. What is the future value? how much total interest is earned on the original deposit? and how much is interest earned on interest?