Calculate the value of the cash flows today

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1. An investment project will pay your firm $2,000 per year. The first payment will come 3 years from today and the last payment will be received 33 years from today. If the discount rate is 12% per year, calculate the value of the cash flows today?

2. A loan shark offers you a loan of $500 today but you must pay back $550 in a month. What is the effective annual rate they are charging?

3. Starting next week, you will make deposits of $200 every week into a savings account which earns 0.15% per week. You currently have $11,400 in that account. How much do you have in your account in 5 years?

4. You will make annual deposits of $5,000 into a retirement account that pays 12% compounded weekly. How much will you have in your account in 30 years?

Reference no: EM13658698

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