Find the present value of a series of 15 monthly payments that start with $5,000 at the end of a month and from then on each payment is equal to 3/4 of the total accumulated up to that moment, before the corresponding payment. Discount with a rate of 30% nominal monthly.
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- At the end of each month for the next ten years you will receive cash flows of $75. If the appropriate discount rate is 7.2%, compounded monthly (i.e., the APR is 7.2%), how much would you pay for the annuity?Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is 10% converted monthly. Find the monthly payment.A payment of $500 is made at the end of each month for three years to a savings account. The interest rate is 12% compounded monthly. Find the future value of the annuity
- Compute the monthly payment on a $65,000 loan if the principal and interest are to be repaid in 84 equal installments with the first payment due one month from now. The annual interest rate is 8.50%.Find the present value of the following annuities: 100 payable every month for 5 years if the interest rate is 12% compounded annually.What is the present value of a perpetuity with payments starting one year from now. The first payment is $15,000. Assume a discount rate of 12%.
- Prepare a time diagram for the present value of a four-year annuity due of $200. Assume an interest rate of 10% per year.A loan of 1,000 is to be repaid by annual payments of 100 to commence at the end of the fifth year and to continue thereafter for as long as necessary. The effective rate of discount is 5%. Find the amount of the final payment if it is to be larger than the regular payments.Find the present value of the following annuities: 1. 100 payable every month for 10 years if the interest rate is 12% compounded annually. 2.500 payable quarterly for 5 years if the interest rate is 12% compounded monthly.
- Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $300,000 at 4%, paid out monthly for 15 years PMT= $you receive a credit card offer that charges interest at 1.75% per month compounded monthly. What is the effective annual interest rate?A scheduled payment of $5,500 due in one year is to be replaced with two payments: the first due in 8 months and the second due in 17 months. Calculate the size of the two payments if the second payment is to be twice as large as the first payment, and money can earn 9% compounded monthly. First payment: $0.00 Second payment: Round your answers to the nearest cent $0.00