Finding present value and annual payments

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Reference no: EM1328016

1. Calculate the present value of $90,000 to be received 14 years from now if the decision makers opportunity cost 10 percent.

2. Find the present value at 9 percent of each of the following five cash inflow streams. Assume that cash inflows occur at the end of the year.

Year A B
1 $8,000 $10,000
2 9,000 10,000
3 10,000 10,000
4 11,000 10,000
5 12,000 10,000

3. If an individual wishes to accumulate $15,000 in six years by making equal annual end of year deposits into an account paying 7 percent interest, how large should the deposit be?

4. A lender wishes to to determine the size of the equal annual end of year payments necessary to fully amortize a $40,000 loan at 11 percent interest over three years. How large should the payments be?

Reference no: EM1328016

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