1A. Your uncle estimated that he needs to pay 10,000$ per year when his child will be in UG studies for 4 years after 18 years from now. If the rate of return is 8.5, how much to invest now?

2A. Your parent gives you 10,000 and they want you to buy a house after 20 years with a rate of return of 7%, how much money there will be for you after 20 years?

2B. If your parents give you 5000 every two years three times from now to help you in buying a house after 20 years with a rate of return of 7%, how much money there will be for you after 20 years?

3A. If you want to donate in donate a scholarship, how much you should pay now that forever you can pay 20000 forever with an interest rate of 5%?

3B. If you want to donate in donate a scholarship, how much you should pay now that you can pay 20000 forever with an interest rate of 5% and increase the scholarship by 2% to cover inflation every year?

4A. you have a mine you are going to make one million profit each year and RoR is 15 % but every year you mine you lose 5 % in the value of the mine, How much you should pay for the mine now?

5. How much a person should pay for a donation that after 10 years, the donation can generate 20,000 donations per year forever ( Interest rate is 5%).

6 A. you are saving 1000 every month for your retirement plan. If your fund can have an interest of 9% per year. How much will there be when you retire after 25 years?

6B. You want to buy a house, and the bank says you have to pay 40,000 per year for 30 year, how much the bank will give you with an interest rate of 5% ?

7. You want to buy a house, and the bank says you have to pay 4,000 per month for 30 year, how much the bank will give you with an interest rate of 5% ?

Get the interest monthly !

8. A bond is on sale with a coupon rate of 5% and a face value of 1000, the market rate interest is 6.5%. Maturity is 13 years. What is the price of the bond?

8B. A bond is on sale with a coupon rate of 5% and a face value of 1000 with semi annually payment, the market rate interest is 6.5%. Maturity is 13 years. What is the price of the bond?

ANSWER ALL QUESTIONS AND GIVE CALCULATIONS

Answer rating: 100% (QA)

1A Present Value of Future Expenses for UG Studies To calculate the present value of future expenses you can use the formula for the present value of an annuity PV Cr1 11rnight Where PV Present Value ... View the full answer