Reference no: EM131339998

1) you need to accumulate $74,900 for your son's education. You have decided to place equal year-end deposits in a savings account for the next 10 years. The savings account pays 3,44 percent per year, compounded annually. How much will each annual payment be? Round answer to two decimal places.

2) If you want to have $250,502 in 14years, how much money should you put in savings account today? Assume that the savings account pays you 5.90 percent, compound monthly. Round answer to two decimal places

3) you have been offered the opportunity to invest in a project that will pay $5,640 per year at the end of years one through three and $11,382 per year at the end of years four and five . If the appropriate discount rate is 14.7 percent per year, what is the present value of this cash flow pattern? Round answer to the nearest two decimal places.

4) Large-cap stocks had the nominal rates of return of 7.44 percent. The rate of inflation during the last year was 1.7 percent. What is the real rate of return for large-cap stocks? Round answer to two decimal places

5) You plan to buy a house in 15 years. you want to save money for a down payment on the new house. You are able to place $286 every month at the end of the months into a savings account at an annual rate 11.43% compounded monthly. How much money will be in the account after you made the last payment?

6) Your mother has been working for a small bookstore for many years. Her sales in the first year were $34,100 and her sales in the last year were $63,600. If the sales grew at an average rate of 6.56 percent per year. How many years did your mother sell books? Round answer to 2 decimal places

7) You have decided to place $422 in equal deposits every month at the beginning of the month into a savings account earning 10.97 percent per year, compounded monthly for the next 10 years. the first deposit is made today. how much money will be in the account at then end of that time period? round the answer to two decimal places

8) What is the present value of the following annuity? $2,955 every year at the end of the for the next 10 years, discounted back to the present at 10.56 percent per year, compounded annually? Round the answer to two decimal places.

9) a firms dividends have grown over the last several years. 6years ago the firm paid a dividend of $1. Yesterday it paid a dividend of $7. What is the average annual growth of dividends. Round the answer to two decimal places.

10) For the next 10 years, you decide to place $1,385 in equal year-end deposits into a savings account earning 4.91 percent per year. How much money will be in the account at the end of that time period? Round the answer to two decimal places.

11) You placed $1,842 in a savings account today that earns an annual interest rate of 19.60 percent compounded annually. How much will you have in this account at the end of 32 years? Assume that all interest received at the end of the year is reinvested the next year. Round the answer two decimal places.

12) What is the present value of a $536 perpetuity discounted back to the present at 11.92 percent. the answer should be calculated to decimal places

13) What is the present value of the following annuity? $4,848 every half year at the end of the period for the next 6 years, discounted back to the present 18.69 percent per year, compounded semiannually. round answer to two decimal places.

14) You plan to apply for a loan from Bank of America. The nominal interest rate for this loan is 9.56 percent, compounded daily (with a 365 day per year.) What is the effective annual rate (EAR) annual percentage yield, of this loan? Round to two decimal places in percentage form.

15) A commercial bank will loan you $45,559 for 6 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 17.66 percent of the unpaid balance. What is the amount of the monthly payments?Round the answer to two decimal places.