You want to have $20,000 available at the end of five years. How much would you need to deposit at the end of each year in an account earning 8 percent interest to make this possible if the interest is compounded annually?

Suppose that your required rate of return on a duplex is 12 percent. You are shown one such property which has an asking price of $30,000. The sales representative shows you the following cash flow projections for a holding period of 6 years: 

Year 1: $4,500 

Year 2: $5,000 

Year 3: $6,000 

Year 4: $3,000 

Year 5: $8,000 

Year 6: $20,000 

What is the net present value (Round your answer to the nearest dollar i.e. zero decimal places)?

Answer rating: 100% (QA)

Lets break down each question 1 To find out how much you need to deposit annually to have 20000 avai... View the full answer