1. Rose plans to go for vacation to Europe in 6 yeats from now. She estimates that she will need $24,388 for the trip. How much does she need to place in a saving account today that earns 5.13% per year (compounded annually) to accumulate this amount? ALL WORK HAS TO BE SHOWN! Round the answer to two decimal places
2. Big brothers, inc borrows $64, 570 from the bank at 10.07 percent per year, compounded annually, to purchase new machinery. this loan is to be repaid in equal annual installments at the end of each year over the next 3 years. how much will each annual payment be? Round the answer to two decimal places
3. You are given an investment to analyze. The cash flows from this investment are
End of year
- $1,662
- $2,853
- $808
- $3,414
- $1,449
What is the future value of this investment at the end of year five if 15.49 percent per year is the appropriate interest (discount) rate? Round the answer to two decimal places
4. What is the present value of a $723 perpetuity discounted back to the present at 10.61 percent. The answer should be calculated to two decimal places.