Calculate the followings

1.You would like to have $45002 in 15 years.. If the rate is 9.72%, how much do you have to invest each year?

2.You would like to have $12298 in 19 years. If the rate is 9.34%, how much do you have to invest each month?

3.Your grandfather has an annuity that is worth $88009 today. It will give him monthly payments for 24 years. If the rate is 3.42%, what will be his monthly payment?

4.Your mother has an annuity that will give her monthly payments for 10 years. She tell you it is worth $81080 today. If her required return is 11.20%, what is the monthly payment?

Answer rating: 100% (QA)

To have 45002 in 15 years at a rate of 972 we can use the formula for the present value of an annuity PV C 1 1 rn r where PV is the present value of t... View the full answer