User Account

All Pages

What is the present value of the payments

Assignment Help Business Economics
Reference no: EM131512834

1. You currently have $60,000 in your bank account and you will need a total of $100,000 in 5 years to pay for a down payment on a house. What interest rate do you need to earn in order to have $100,000 in your bank account 5 years from now? Enter your answer as a percentage rounded to 2 decimal places. Do not include the percentage sign in your answer.

Enter your response below.

2. Suppose you take out a car loan that requires you to pay $10,000 now, $4,000 at the end of year 1, and $7,000 at the end of year 2. The interest rate is 5% now and increases to 8% in the next year. What is the present value of the payments?

Enter your response below rounded to 2 decimal places.

3. If you invest $5,000 into a savings account that yields quarterly compound interest with an annual interest rate of 7%, how much will you have in the savings account after 9 years?

Enter your response below (rounded to 2 decimal places).

4. Suppose you will receive payments of $1,000, $1,000, and $9,000 in 1, 5, and 9 year(s) from now, respectively. What is the total present value of this stream of payments if the interest rate is 9%?

Enter your response below rounded to 2 decimal places.

5. What is the present value of $30,000 that is received 10 years from now? The annual interest rate is 4%.

Enter your response below rounded to 2 decimal places.

6. An investment promises to pay you $8,000 per year forever with the first payment today. If alternative investments of similar risk earn 6.53% per year, determine the maximum you would be willing to pay for this investment.

Enter your response below (rounded to 2 decimal places).

7. If the real interest rate is 4.9% and the inflation rate is 2%, what is the nominal interest rate? Enter you answer as a percentage. Do not enter the percentage sign into your answer.

Enter your response below (rounded to 2 decimal places).

8. If the effective annual rate of interest is known to be 7% on a debt that has semi-annual payments, what is the annual percentage rate? Enter your answer as a percentage rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer.

Enter your response below.

9. Suppose you borrow $30,000 from a bank. The terms of the loan are 18 years with an interest rate of 5%. What are the annual loan payments at the end of the year to the bank?

Enter your response below (rounded to 2 decimal places).

Reference no: EM131512834

Questions Cloud

Create an entity-relationship diagram for the scenario : create an entity-relationship (E-R) diagram for the scenario that you selected from Hands-On Database and based on the information you produced.
Prepare a international business report : Having now completed a major analysis of environment in which your business will operate you will need to prepare Part 2 of your International Business Report
Identify and address any other security concerns : Identify and address any other security concerns. The client realizes that her expertise is in coffee and hospitality
Comparative advantage in producing : What are some examples of goods that the United States has comparative advantage in producing?
What is the present value of the payments : The interest rate is 5% now and increases to 8% in the next year. What is the present value of the payments?
What was the bigger issue here : What was the "bigger" issue here? Who was for Apple complying, and, who was against? What were each side's reasoning?
Research a real life business example : HC1041 Assessment - Impact of IT on Business. You are to research a real life business example of your choice and the impact of IT on that business
Examine and analyse the context and environments : How does the firm go about collecting information about the 5Cs? For example, how does it learn about?
Economy in order to reduce unemployment : What could be done in the economy in order to reduce unemployment? In other words, if you were the president of the United States of America

Reviews

Write a Review

Business Economics Questions & Answers

  Raised the world price of oil

OPEC successfully raised the world price of oil in the 1970s and early 1980s, primarily due to:

  Demonstrate the effects of an increase in government

Assuming that the economy is below full employment, demonstrate the effects of an increase in government spending of $300 versus a decrease in taxes of $300 on output/income and interest rates. Assume that the MPC in the economy is .65. Show results ..

  Method the price elasticity of demand for a good

Using the midpoint method the price elasticity of Demand for a good is computed to be approximately

  The only sure things in life are death and taxes

As the saying goes, "the only sure things in life are death and taxes." This saying points out the result that everything having to do with taxes is an automatic fiscal policy.

  Adaptive expectations and rational expectation

If the equation for a country's Phillips curve is p = 0.02 – 0.7(u – 0.055), where p is the rate of inflation and u is the unemployment rate, what is the short-run inflation rate when unemployment is 5.8 percent (0.058)? Describe the difference in as..

  Given the demand and cost conditions

Given the demand and cost conditions, what price, output and profits result in the short run? What will happen as the firm moves from the short to the long run

  Current and capital accounts in the us balance

1. Note that the current and capital accounts in the U.S. Balance of payments (BOP) are mostly private transactions while the official settlements balance involves transactions between governments

  Consider the market for chocolate

Consider the market for chocolate. Say that bad weather has hurt cocoa bean crops. At the same time, people are wanted to eat more chocolate. Which event affects demand, and which affects supply? What would be the effect on equilibrium price and ..

  Reduce pollution from paper production is to reduce output

Suppose that the only way to reduce pollution from paper production is to reduce output. The government imposes a tax equal to the marginal harm from the pollution on the monopoly producer. Show that the tax may or may not raise welfare?

  What is monopolistic about monopolistic competition

What is "monopolistic" about monopolistic competition? What is "competitive" about a monopolistically competitive market? Please explain.

  Participate in requirements definition

On an IT system development project, what team members are required to participate in requirements definition?

  Illustrate how do these two relate to each other

Illustrate how do these two relate to each other in the Circular Flow Economy and to the Government and Foreign Sector components? How does all this fit on a Wheel of Income.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd