What is the value of an investment

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Question: 1. What is the value of an investment that will pay investors 2,940 dollars per year for 7 years and will also pay investors an additional 9,150 dollars in 1 year(s) from today if the expected return for the investment is 13.63 percent per year and the first annual payment of 2,940 dollars will be paid to investors in one year from today?

2. Bianca took out a loan from the bank today for X. She plans to repay this loan by making payments of 1,880 dollars per month for a certain amount of time. If the interest rate on the loan is 0.59 percent per month, she makes her first payment of 1,880 dollars later today, and she makes her final monthly payment of 1,880 dollars in 8 months, then what is X, the amount of the loan?

3. Sasha has an investment worth 24,762 dollars. The investment will make a special, extra payment of X to Sasha in 6 years from today. The investment also will make regular, fixed annual payments of 2,800 dollars to Sasha with the first of these payments made to Sasha later today and the last of these annual payments made to Sasha in 8 years from today. The expected return for the investment is 5.25 percent per year. What is X, the amount of the special payment that will be made to Sasha in 6 years?

Reference no: EM131925246

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