1. What is the present worth of January 1, 1968 of $1295 on January 1, 1975,...

  

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1. What is the present worth of January 1, 1968 of $1295 on January 1, 1975, if interest is at 627 2. How much would you have to invest at 6% interest on January 1, 1975. in order to accumulate $1850 on January 1, 1981? 3. If 1000 ($) is invested at 6% compound interest in January 1, 1971, how much will be accumulated by January 1, 19817 4. 5. What is the present value of a series of 10 deposits of 200 ($/ye) 6% made at the end of each year if the first deposit is made in 1968 How much will be accumulated in a fund, earning 8% interest, 10 years after the first deposit of $118 is deposited. Deposits are made at the end of each year for 10 years. At what rate of interest compounded annually will an investment of $10,000 triple itself in 8 years? What is the equivalent annual - payment series of that $10,000 at that interest rate? 7. How much invested now at 5% would lump sum payments of $6000 at t 5, 10,15, and 20t be just enough to provide for four Make this problem in two different ways. Method #1: use only single amount equivalence factors. Method #2: use only unifom series equivalence factors. A bank offers depositors daily compounding of interest. It adver- tizes the nominal interest as being 6.5%. Compute the equivalent. annual uniform series of incomes someone could count on for 20 years if deposited 1,000,000 ($). for The operating expenses for a road building machine are 4000 ($/year) maintenance and repair costs are 500 (9/year) in years. 2, 1000 ($/y) in year 3, 1500. ($/yr) in year 4, and so on. What is 6. 4 9. the present value of the machine if its purchase price new is 30,000 ($)? ( - 5) 1. What is the present worth of January 1, 1968 of $1295 on January 1, 1975, if interest is at 627 2. How much would you have to invest at 6% interest on January 1, 1975. in order to accumulate $1850 on January 1, 1981? 3. If 1000 ($) is invested at 6% compound interest in January 1, 1971, how much will be accumulated by January 1, 19817 4. 5. What is the present value of a series of 10 deposits of 200 ($/ye) 6% made at the end of each year if the first deposit is made in 1968 How much will be accumulated in a fund, earning 8% interest, 10 years after the first deposit of $118 is deposited. Deposits are made at the end of each year for 10 years. At what rate of interest compounded annually will an investment of $10,000 triple itself in 8 years? What is the equivalent annual - payment series of that $10,000 at that interest rate? 7. How much invested now at 5% would lump sum payments of $6000 at t 5, 10,15, and 20t be just enough to provide for four Make this problem in two different ways. Method #1: use only single amount equivalence factors. Method #2: use only unifom series equivalence factors. A bank offers depositors daily compounding of interest. It adver- tizes the nominal interest as being 6.5%. Compute the equivalent. annual uniform series of incomes someone could count on for 20 years if deposited 1,000,000 ($). for The operating expenses for a road building machine are 4000 ($/year) maintenance and repair costs are 500 (9/year) in years. 2, 1000 ($/y) in year 3, 1500. ($/yr) in year 4, and so on. What is 6. 4 9. the present value of the machine if its purchase price new is 30,000 ($)? ( - 5)

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1 To calculate the present worth of 1295 on January 1 1975 with an interest rate of 6 we need to discount the future value to its present value using the formula Present Worth Future Value 1 Interest ... View the full answer