Compute the year six future value of deposits

Assignment Help Financial Management

Reference no: EM131307833

1. What is the present value of a $10,000 annual annuity due with payments over 10 years if interest rates are 5.00%?

2. What is the future value of a $10,000 annual annuity due with payments over 10 years if interest rates are 5.00%?

3. Given a 7% annual interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,000, $10,000, $15,000 and $15,000, respectively.

Reference no: EM131307833

Questions Cloud

About the agreement : AGREEMENT Andrew offered to purchase Rob’s house and gave Rob six weeks for a definite answer. Rob, on the basis of this offer, bought another house. Before the six weeks expired, but after Rob had bought the second house, Andrew withdrew his offer. ..

Suppose the stock pays a continuous dividend yield : A stock price is currently priced at $25. In 1 year its price will either be $26 or $30. The risk-free rate is 5% per annum with continuous compounding. (a) Suppose the stock pays a continuous dividend yield of 3% per annum. Construct an arbitrage op..

Assume conservative nominal annual investment rate : Since my daughter will arrive soon, I would like to set up a regular payment into an interest bearing account that will allow my daughter to attend college with little or no debt. My estimate is that I will need to have $50, 000 by the time she is 18..

Teds employment was insufficient for her support : Ann, aged 14, signed a three-year contract with Ted in order to learn ballet dancing. The terms of the contract stated that: a Ted would teach Ann ballet dancing to the best of his ability free of charge; Ann accepted a stage engagement from Bill, as..

Compute the year six future value of deposits : What is the present value of a $10,000 annual annuity due with payments over 10 years if interest rates are 5.00%? What is the future value of a $10,000 annual annuity due with payments over 10 years if interest rates are 5.00%? Given a 7% annual int..

Find the present value of the annuity : A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In subsequent years each payment increases by $5 over what it was the previous year. Find the present value of the annuity if i = 3%.

Find total amount of liquidation from the two funds : Melanie receives an annuity paying $1,000 at the end of each month for eight years. This is directly deposited to a fund paying interest at an annual effective rate of 7.28%. Interest is paid out at the end of each year to a fund with an annual yield..

Plow back its earnings to fuel growth : Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next eight years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $12.75 per share 9 years..

Costs deluxe river cruises operates a fleet of river vessels : Minimizing Cruise Line Costs Deluxe River Cruises operates a fleet of river vessels. The fleet has two types of vessels: A type A vessel has 60 deluxe cabins and 160 standard cabins, whereas a type B vessel has 80 deluxe cabins and 120 standard cabin..

User Account

All Pages