Equivalent amounts if the interest rate

Assignment Help Business Economics

Reference no: EM13860681

Find the following equivalent amounts if the interest rate is 8% compounded annually.

(Please show formula used and work)

a. The present value of a series of prospective payments, $1,200 a year for 100 years.

b. The accumulated value of series of prospective payments, $12 a year for 100 years.

c. The equal series of payments to be paid into a sinking fund to accumulate $1,200,000 in 100 years.

d. The equal series of payments to be made to repay a present amount of $120,000 in 100 years.

Reference no: EM13860681

Questions Cloud

What is the internal rate of return on your invesment : Suppose you purchase a 30-year, zero-coupon bond with a yeild to maturity of 6%. You hold the bond for five years before selling it. If the bond's yield to maturity is 6% when you sell it, what is the internal rate of return on your invesment? If the..

Increase in the money-well-constructed and persuasive manner : Your book describes the increase in the money supply as being analogous to giving people more money. If the output of goods and services is not growing at a similar rate, inflation will eventually occur. According to PPP Theory, what will happen to t..

Analyze how we satisfy customers using data : In a 1-2 page paper, analyze how we satisfy customers using data and how do measures help the organizational process

Mutual stock fund has grown at rate : A mutual stock fund has grown at a rate of 16% compounded annually since its beginning. If it is anticipated that it will continue to grow at this rate, how much must be invested every year so that $60,000 will be accumulated at the end of 12 year?

Equivalent amounts if the interest rate : Find the following equivalent amounts if the interest rate is 8% compounded annually.

Required to recover the capital with the desired interest : An interest rate of 10% compounded continuously is desired on an investment of $15,000. How many years will be required to recover the capital with the desired interest if $2,030 is received each year? (Please show formula used and work)

Write an essay on global citizenship : Write an essay on given topic- Global Citizenship (GC). choose three elements of global citizenship from these options (education, human rights, cultural, business, environment, etc) and then write one paragraph about each element

Geometrically increasing series of payments : Find the present-value equivalent to the following geometrically increasing series of payments.

Find the equal annual payment series : Find the equal annual payment series that would be equivalent to the following increasing series of payments if the interest rate is 12%.

User Account

All Pages