Question: Can someone help me understand econmey please!!! 1. A payment of $2,000 will be realized today with additional payments of $1,000 at the end of
Can someone help me understand econmey please!!!
1. A payment of $2,000 will be realized today with additional payments of $1,000 at the end of each of the next 5 years. Assume a nominal interest rate of 20% is appropriate. Calculate the future value of all the payments at the end of five years from now.
2. An investor is scheduled to receive annual payment of $1,000 at years 1, 2, and 3. For annual interest rate of 10% compounded quarterly, calculate the time zero present value, and the year 3 future value of these payments.
3. An oil producer has purchased a pumping unit for $30,000, and the loan is to be paid back in 8 equal yearly installments of $5,319.92. Calculate the interest rate charged for this financing arrangement.
4. A retiree has a Roth IRA account with a current value of $2,000,000. If the total account value was invested today in a 25-year annuity based on 7.0% annual interest, What annual revenue will be available over the next 25 years?
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