Determine what is the present value of payments

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Question 1.) A buyer is interested in a property that you own. The buyer proposes the following terms: payment of 60,000 each year for 20 years starting Jan 1, Year 5. Assuming the appropriate rate of interest is 9.5%. What is the present value of payments? (Use 4 decimal points for the Time value Factor)

Question 2.) You are to lease your property with the following payment terms:

Jan 1, Year 1 - 30,000

Dec 31, Year 1 - 50,000

Jan 3, Year 2 - 55,000

Dec 31, Year 3 - 60,000

The rate implicit to the lease is 8.5%. What is the present value of the lease payments? (Use 4 decimal points for the Time value Factor)

Question 3.) An annual deposit of 8,000 is made to an account at the beginning of each year for 6 years. The savings account pays 8% interest. What is the value of the account at 6th year? (Use 4 decimal points for the Time value Factor)

Reference no: EM132583795

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