fin100 week 5 assignment | |||||||||||||||||||||

Please show your work. If you don’t show your work, you will not get credit. Show work in Excel. | |||||||||||||||||||||

1. What will $ 150,000 grow to be in 10 years if it is invested today in an account with a quoted annual interest rate of 9% with monthly compounding of interest? | |||||||||||||||||||||

2. How many years will it take for $345,000 to grow to be $764,000 if it is invested in an account with a quoted annual interest rate of 10% with monthly compounding of interest? | |||||||||||||||||||||

3. At what quoted annual interest rate must $ 198,000 be invested so that it will grow to be $450,000 in 19 years if interest is compounded weekly? | |||||||||||||||||||||

4. You are offered an investment with a quoted annual interest rate of 19% with quarterly compounding of interest. What is your effective annual interest rate? | |||||||||||||||||||||

5. You are offered an annuity that will pay $34,000 per year for 12 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 11%, what is the annuity worth to you today? | |||||||||||||||||||||

6. If you deposit $14,000 per year for 11 years (each deposit is made at the end of each year) in an account that pays an annual interest rate of 12%, what will your account be worth at the end of 10 years? | |||||||||||||||||||||

7. You plan to borrow $423,000 now and repay it in 20 equal annual installments (payments will be made at the end of each year). If the annual interest rate is 10%, how much will your annual payments be? | |||||||||||||||||||||

8. You are told that if you invest $ 10,000 per year for 22 years (all payments made at the end of each year) you will have accumulated $321,000 at the end of the period. What annual rate of return is the investment offering? | |||||||||||||||||||||

9. You are offered an annuity that will pay $15,000 per year for 2 years (the first payment will be made today). If you feel that the appropriate discount rate is 9%, what is the annuity worth to you today? | |||||||||||||||||||||

10. If you deposit $ 10,000 per year for 12 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 10%, what will your account be worth at the end of 10 years? | |||||||||||||||||||||