Calculate total present value of stream of payments

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-Suppose you will receive payments of $1,000, $2,000, and $3,000 in 1, 4, and 10 year(s) from now, respectively. What is the total present value of this stream of payments if the interest rate is 4%?

-If you invest $3,700 into a savings account at an interest rate of 4%, compounded annually, how much will you have in the savings account after 7 years?

-If you invest $6,000 into a savings account at an annual interest rate of 3% (APR), compounded semi-annually, how much will you have in the savings account after 9 years?

-Suppose you take out a car loan that requires you to pay $6,000 now, $3,000 at the end of year 1, and $6,000 at the end of year 2. The interest rate is 1% now and increases to 8% in the next year. What is the present value of the payments?

-Suppose you have $22,000 today. You would like to be able to buy a car that will cost $46,500 in 5 years. What annually compounded interest rate would you need to earn in order to be able to buy the car?

Reference no: EM132648769

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