What is the future value of a $700 annuity payment over six years if interest rates are 10 percent?
Answer to relevant QuestionsCompute the present value of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 if interest rates are 10 percent.Given a 5 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,000, $1,300, $1,300, and $1,400. You are looking to buy a car. You can afford $450 in monthly payments for four years. In addition to the loan, you can make a $1,000 down payment. If interest rates are 5 percent APR, what price of car can you afford?What annual interest rate would you need to earn if you wanted a $1,000 per month contribution to grow to $75,000 in six years? To borrow $700, you are offered an add-on interest loan at 9 percent with 12 monthly payments. First, compute the 12 equal payments and then compute the EAR of the loan:
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