Calculate the present value of an ordinary annuity

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The analysis of the financial statements through the indicators, solves the following problems. Use a financial calculator to solve the problems. It is important that you include the procedure and briefly explain how you obtained each result. Keep in mind that the rubric also includes a criterion to evaluate the correct use of language, grammar, spelling and syntax

-If an investor intends to double $ 25,000 by investing in a bank that pays 7% interest per year, determine how long it would take to double the investment.

-If you save money from the age of 20 and save $ 4 daily and, at the end of the year, you invest everything saved in a mutual fund account that has a 7% annual return, determine the balance of the account when you reach 62 years .

-Suppose the Land River Company decides to purchase a housing complex in 6 years and estimates that it can save $ 15,000 per year. The company deposits the money at the end of the year in World Central Bank at 5% interest. Calculate the balance after 6 years and calculate the account balance if the rate decreased to 4%.

-The family attorney notified you that you are the sole heir to your long-lost uncle's legacy. You have two options to receive the inheritance: receive $ 500,000 at the end of each of the next 10 years or receive a one-time payment of $ 2,500,000. Determine which is the best option.

-Calculate the Present Value of an ordinary Annuity (PVA) that includes 12 payments of $ 200 and an interest rate of 9%.

Reference no: EM132951480

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