Reference no: EM132575406

Question 1. What is the future value of each of the following streams of payment made at the beginning of each period?

a) $ 5,000 a year, 10 years compounded annually at 5%

b) $8,000 a year, 5 years compounded quarterly at 8% per year

Question 2. Lisa Simpson wants to have $1,000,000 in 45 years by making equal annual beginning of the year deposits into a deferred account paying 8.75% annually. What must be Lisa's annual deposit?

Question 3. On August 18, 2013, Mr Chen borrowed $100,000 agreeing to repay this sum in 20 equal annual installments at the start of each period with a 15% interest. How large will be the annual payments?

Question 4. How long will it take to pay off a loan of $9,587.33 that you borrowed today at an annual rate of 10% compounded quarterly if you made the payment of $600 at the beginning?

Question 5. Suppose you save $2,000 at the beginning per year to accumulate Php 139,521.58 at the Citibank, and the money earns 5% interest per year. How long will it take you to realize that amount?

Question 6. To pay for your education, you've taken out $25,000 in students' loans. If you make monthly payment at the end of each period over 15 years at 7% compounded monthly, how much are your monthly student loan payments? In addition, calculate also the payment if the PV is $50,000 and a rate of 12%.

Question 7. To pay for your child's education, you wish to have accumulated $15,000 at the end of 15 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 6% compounded annually, how much must your deposit each year to obtain your goal? What if also the future value is $25,000 with a rate of 8% for 20 years, calculate the payment.

Question 8. Mr. Tatunay wants to have $2,000,000 in 35 years by making annual beginning deposit into a deferred account paying 7.75% annually. How much will be Tatunay's annual deposit?

Question 9. Today Mr. Sy borrowed $ 3,000,000 agreeing to repay this sum in 25 equal annual installments at the start of each period with a 16% interest. How large will be the annual payment?

Question 10. Suppose you save Php 1,889.48 at the beginning per year to accumulate 1,000,000 at the China Bank, and the money earns 8.75% interest per year. How long will it take you realize the desired value?

Question 11. How long will it take to pay off a loan of Php 19,000 that you borrowed today at an annual rate of 7% if you made annual payment of $2,500 at the start of each period?