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Calculate present value of annual payments

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Reference no: EM132044402

1. Calculate the present value of annual payments of $3,000 per year for ten years at 8%.

2. How much will you have at the end of the 6th year if you invest $5,000 annually for six years at 7% annual rate.

3. How long it will take for $2,500 to become $8,865 if it is deposited and earns 5% per year compounded annually? (Calculate to the closest year.)

4. Sum the present values of the following cashflows to be received at the end of each of the next six years $1,500, $3,500, $3,750, $4,250, $5,000, $5,000 when the annual discount rate is 4%.

5. A bank agrees to give you a loan of $12,000,000 and you have to pay $1,309,908 per year (end of year) for 26 years. What is your rate of interest?

Reference no: EM132044402

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