What is the size of equal annual repayment

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Reference no: EM131620632

Draw the cashflow diagram for each problem. Then answer the questions by using appropriate formulas and compare the results using factor notations for DCF tables.

(a) If you borrow $6,000 for six years. How much you have to repay as a lump sum at the end of sixth year? i = 9%.

(b) You desire to have $10,000 in 5 years form now. What amount should be deposited now to provide for it? i = 10%.

(c) If you deposit $400 end of each year deposit for the next nine years, how much money you have accumulated immediately after the last deposit? i = 12%.

(d) What uniform annual amount you have to deposit each year in order to accumulate $12,000 at the time of 10th deposit? i = 10%.

(e) How much money should be deposited in a bank account now to provide for five end-of-year withdrawals of $500 each? i = 9%.

(f) You have a car loan worth of $15,000 to be repaid over 12 years. What is the size of equal annual repayment? First payment due one year after receiving loan. i = 9%.

Reference no: EM131620632

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