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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Suppose you want to buy a vacant lot for your future home for $29,673. If your bank is willing to loan you the money at a 6% APR over the next 14 years how much would be your monthly payment? (Round up your answer to two decimal point)
- Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6 years, at a 9% interest rate. What is the most you should pay for the annuity? USE FORMULAYou deposit $100 today, $200 one year from now, and $300 three years from now. How much money will you have at the end of year three if there are different annual interest rates per period according to the following diagram?Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9 percent. What is the future value if the payments are made on the last day of the year? What if the payments are made on the first day of the year? a) $82,756.68; $90,204.78 b) $90,204.78; $82,756.68 c) $49,345.10; $53,786.16 d) $53,786.16; $49,345.10
- You want to invest in an annuity that will pay you $2,300 per quarter for the first 8 years and $1,200 per month for the last 5 years. If the annuity earns 4.35% compounded quarterly for the first 8 years and 5.85% compounded monthly for the remaining 5 years, what would be the amount of your initial investment? Enter the appropriate values in the blanks below, round answers to two decimal places. Initial Balance ||<---- I 5 years A/ N = A/ P/Y= A/ PV = A/ PMT= A/ FV = Final Balance A/ E ESuppose you take out a 30 year mortgage for $ 150000 at 6.75% interest. The monthly payments on this loan are $ 972.90. If you pay an extra 10% per month on your mortgage, how soon will you pay off the loan?New length in years = How much will you save in interest by making the extra payments?Saving = If you put $ 972.90 per month into an annuity earning 8.75% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years?Extra savings =Suppose you take out a 30 year mortgage for $ 200000 at 8.5% interest. The monthly payments on this loan are $ 1537.83. If you pay an extra 50% per month on your mortgage, how soon will you pay off the loan?New length in years = How much will you save in interest by making the extra payments?Saving =
- Suppose you find an annuity that pays 8% annual interest, compounded annually. If you invest in this annuity and contribute $10, 000 annually for 10 years, how much money will be in the annuity after 10 years? Enter your answer rounded to the nearest hundred dollars and omit the dollar sign and comma (For example $122, 570.21 should be input as 122600.) Provide your answer below:Suppose you take out a 30-year mortgage for $ 275000 at 8.5% interest. The monthly payments on this loan are $ 2114.51. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan?New length in years = How much will you save in interest by making the extra payments?Saving =Suppose you wish to have $18500 in 5 years. use the present value formula to find out how much you should invest now at 9% interest, compounded semiannually, in order to have $18,500, 5 years from now. Then calculate the interest. The possible answers are: a. 6587.34 b. 8325.00 c. 10175.00 d. 11912.66 I understand how to do the present value formula but after that I don't understand how to calculate the interest, please help!