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- Problem #3 Solve for the following: 1) Present worth equivalence 2) Annual worth equivalence spread from years 1 to 10 3) Future worth equivalence at the end of year 5 4) Future worth equivalence at the end of year 10 i = 13% 10 $500 $1000 $1500 $2000 P=? $2500 $3000You just invested $5,000 in Apple's stock that will yield 10% per year. Assumed that your annual returns are invested, how long will it take to triple your investment? 10 years 11.5 years 30 years 7.2 years3) Ahmad plans to make the deposits and withdrawals amounts shown in the cash shown below, find how much will be in his account at end of year 10 at i=10% per year: $10,000 0 1 2 3 $8,000 4 $4,000 5 6 7 $6,000 8 9 10 year
- When you take your job, you decide to start saving for your retirement. You put $5,000/yr into the co’s plan, which averages 8% interest/yr. Five yrs later, you move to another job and start a new plan. You never get around to merging the funds, if the 1st plan continued to earn interest at the rate of 8%/yr for 35 yrs after you stopped making contributions, how much is the account worth?Charlie has $16,000 to invest for a period of 5 years. The following three alternatives are available to him: • Account 1 pays 3,00% for year 1, 4.00% for year 2, 6.00 % for year 3, 8.00% for year 4, and 11.00% for year 5, all with annual compounding. . • Account 2 pays 11.00% for year 1, 8.00 % for year 2, 6.00% for year 3, 4.00% for year 4, and 3.00% for year 5, all with annual compounding. • Account 3 pays interest at the rate of 6.36154% per year for all 5 years. Based on the available balance at the end of year 5, which alternative is Charlie's best choice? Year 5 Balance, Alternative 1:$ Year 5 Balance, Alternative 2: $ Year 5 Balance, Alternative 3: $Spivey just won the Powerball Ilottery! The $25,000,000 jackpot will be paid in 10 annual installments of $2,500,000 each, with the first payment to be paid immediately. Spivey's opportunity cost of capital (interest rate) is 4% per year. What is the present equivalent of Spivey's lottery winnings at the time of the first payment?
- A.) A man pays his debt in the following manner: P1000 after 1 yr., and decreases P77 every year up to 6th yr. Find the accumulated amount of these payments at the rate of 15% compounded annually. B.) The annual maintenance cost of a generator is P834 after 1 year and it is estimated to increase by 10% each year for the subsequent 7 years. Find the present worth of the maintenance cost if the rate of interest is 15% compounded annually. Note: please solve it mannually without using computer so that we could understand how to solve itA cash flow profile starts with $2,000 and increases by $1,000 each year up to $21,000 at time 20. Then, it starts again with $21,000 at time 21 and decreases by $1,000 each year to $2,000 at year 40. You desire to convert itto an equivalent gradient series beginning at year 1 with $X and continuingthrough year 40 with $500 increases each year (ending at $X + 19,500 at time40). Interest is 8% compounded annually. What is X?Assume you graduate from college with $26000 in student loans. If your interest rate is fixed at 4.5% APR with monthly compounding and you repay the loans over a 10-year period, what will be your monthly payment? (Note: Be careful not to round any intermediate steps less than six decimal places.) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- You want to invest a $(number equal to your ID number) in your saving account at the end of the first year and increase this amount by $1,200,000 for each of the next 11 years Then what should be the size of an annual uniform deposit that yields an equal balance with the above by the end of 11 years if the ?interest rate is 3% note if your ID number is 201900098 then ) the investment at the end of first year = $201900098Sean took an education loan for his MBA today. He borrowed Php 425,000 from the bank at a rate of interest of 25 percent per annum (25% per year). The interest is compounded annually. How much money will Sean owe the bank after four years? Answer: F4 = PhpBlank 1Linda deposits $60,000 into an account that pays simple interest at a rate of 6% per year. Bob deposits $60,000 into an account that also pays 6% interest per year. But it is compounded annually. Find the interest Linda and Bob earn during each of the first three years. Then decide who earns more interest for each year. Assume there are no withdrawals and no additional deposits. Year First Second Third Interest Linda earns (Simple interest) $3600 $3600 $3600 Interest Bob earns (Interest compounded annually) $3600 $3960 $4176 Who earns more interest? Linda earns more. Bob earns more. They earn the same amount. Linda earns more. Bob earns more. They earn the same amount. Linda earns more. Bob earns more. O They earn the same amount. X S