Determine the value at the end of year four of $200 deposited today into a savings account

Fantastic news! We've Found the answer you've been seeking!

Question:

Determine the value at the end of year four of $200 deposited today into a savings account with an annual interest rate of 8.5 percent, compounded yearly.

If an individual wanted to have $8,000 at the end of five years, how much would he have to deposit today into a savings account that earns interest at an annual rate of 7.5 percent and compounds quarterly?

If lease payments on an office call for $1,550 per month (paid at the beginning of the month) for 24 months, what is the current value of the lease to the landlord. Assume an annual discount rate of 15 percent.

Determine the annual debt service (payment to amortize the loan) required to fully amortize a $240,000 loan at 8.625 percent interest, if paid monthly over 25 years.

Determine the outstanding balance at the end of seven years on a $500,000 loan (paid monthly and fully amortized over 30 years), originated at 9.0 percent annual interest, with one discount point.

What is the value of a property that is expected to have a constant net operating income of $25,000 for the next 5 years (assume the cash flow is received at the end of the year) and will be sold for $280,000 at the end of year 5? The investor’s required annual rate of return is 12 percent

Determine the value at the end of year four of $200 deposited today into a savings account with an annual interest rate of 8.5 percent, compounded monthly.

If an individual wanted to have $8,000 at the end of five years, how much would he have to deposit today into a saving account that earns interest at an annual rate of 7.5 percent, and compounds quarterly.

. An investor anticipates that land values for a site will be worth $100,000 in five years. If real estate taxes are expected to be $2,500 each year, how much can the investor pay today for the site and still earn a 15 percent return on his investment?

If lease payments on an office call for $1,550 per month (paid at the beginning of the month) for twenty-four months, what is the current value of the lease to the landlord. Assume an annual discount rate of 15 percent.