Computing the Present Value of a Single Amount

Depp is reviewing an investment that will provide a payout of $$30,000$ in five years. If Depp considers a $7\%$ interest rate $($compounded annually$)$ acceptable, what amount is Depp willing to pay for the investment today?

Round answer to the nearest whole dollar.

Do not use a negative sign with your answer.

$ Answer $1$

Computing the Future Value of an Annuity

Stone will deposit $$7,500$ at the beginning of each year for $10$ years in a fund that earns $7\%,$ compounded annually. What is the total amount of the fund at the end of $10$ years?

Round answer to the nearest whole dollar.

Do not use a negative sign with your answer.

$ Answer $1$

Computing the Present Value of an Annuity

Nicholas receives loan proceeds today from a financial institution. Nicholas agrees to pay the financial institution $$1,000$ at the beginning of each month over a $3-$year period, with the first payment due immediately. Assuming the interest rate on the loan is $8\mathrm{.}5\%,$ what is the present value of the loan?

Round answer to the nearest whole dollar.

Do not use a negative sign with your answer.

$ Answer $1$

Computing the Value of Deferred Annuity

What is the present value of $4$ years of annual cash receipts of $$8,000$ at the end of each year that begins two years from today, assuming a $6\%$ interest rate?

Round answer to the nearest whole dollar.

Do not use a negative sign with your answer.

$ Answer $1$

$.$

Solving for Annuity Amount per Period

Samuel borrowed $$25,000$ to purchase a vehicle on January $1$ by signing a five$-$year note with a $6\%$ interest rate. Assuming end of month payments and monthly compounding, what is the monthly payment on the loan?

Round answer to the nearest whole dollar.

Do not use a negative sign with your answer.

$ Answer $1$

Determining Lease Liability

Applied Inc. signed a $10-$year lease for its corporate office space on January $2.$ The first annual payment of $$40,000$ is due immediately. Assuming an interest rate of $7\%,$ what is the present value of the lease liability?

Round answer to the nearest whole dollar.

Do not use a negative sign with your answer.

$ Answer $1$