Solve the following crossword. (Round your final answers to the nearest dollar, but do not round intermediate

Question:

Solve the following crossword. (Round your final answers to the nearest dollar, but do not round intermediate calculations.)

ACROSS
1. A rich uncle has promised to pay you $3,160 a year for the next 25 years. If you invest this money at 4.9%, how much will you have at the end of the 25 years?
5. Alexander put $10,000 under his mattress 20 years ago. Since then inflation has averaged 1%.
What is the real value of his savings?
9. A 20-year annuity has a present value of $42,419,233. If the interest rate is 15%, what is the annual cash flow?
10. A Treasury bond pays $ 1 million at the end of 20 years. What is its present value if the interest rate is 4%?
11. A project is forecast to produce a safe cash flow of $800,000 a year for 20 years. If the cost of capital is 4%, what is the present value of the project?
12. If you invest $ 100,000 today, how much will your savings be worth at the end of 9 years if the interest rate is 10%?
15. An annuity due with 10 annual payments has a present value of 1,244,353. If the interest rate is 15%, what is the annual payment?
18. Investment in a Dustinbourne grinder is expected to produce cash flows over the following 7 years of $7 million, $8 million, $9 million, $ 10 million. $9 million, $8 million, and $7 million. What is the present value of the project if the cost of capital is 5%?
20. You invest $95,525 for 20 years at 11.7%. Inflation over the same period is 4% a year. What is the real value of your savings at the end of that period?
22. You invest $ 1 million for 7 years at 5% and then for a further 7 years at 8%. How much will you have at the end of this time?
23. The discount factor is .8, and the present value of a cash flow is $2,703. What is the cash flow?
24. A deferred annuity makes four equal payments of $ 129,987 a year starting at the end of year 8. If the interest rate is 12%, what is its present value?
DOWN
2. The winning lottery ticket promises to make 30 payments of $30,000 a year starting immediately. If the interest rate is 5.8%, what is the present value of these payments?
3. An investment in consol bonds promises to provide an interest payment of $2.5 million a year in perpetuity. If the interest rate is 3.3%, what is the value of this investment?
4. The discount factor is .9. What is the present value of $63,269?
6. If you pay the bank $50 a year for 10 years, it promises to pay you $100 a year forever starting in year 11. If the interest rate is 4.2%, what is the value of this proposal to you?
7. The nominal interest rate is 13% and inflation is 4%. If you invest $100,000 today, what will be the real value of your investment at the end of 20 years?
8. What is the value of a payment of $2,125,000 in year 30 if the interest rate is 3.8%?
13. What is the future value of an investment of $20 million at the end of 11 years if the interest rate is 9%?
14. Henry Hub has 25 years to retirement and expects to spend a further 20 years in retirement (i.e.. years 21-45). He lives an extravagant lifestyle and has drawn up a detailed spreadsheet which suggests that he will spend $256,880 a year in real terms in retirement. If the real interest rate is 3%, how much does Henry need to save each year in real terms until retirement to attain his spending goal?
16. A factory is forecast to produce the following cash flows: year 1, $6,516; year 2, $7,000; year 3 $11,400; year 4 onward in perpetuity, $12,000. If the cost of capital is 6%, what is the factory's present value?
17. What is the future value of $ 189.956 at the end of 7 years if the interest rate is 11 %?
19. Natasha has savings of $78,780. If she invests the full amount in a bank at an interest rate of 4%, how much will she have after 4 years?
21. You plan to save $ 1,000 a year. If the interest rate is 8%, how much will you have saved by the end of year 5?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...