Question: Final answers only! please answer all questions! What is the present value of the following cash flow stream at a rate of 18.0%? Years: 0



What is the present value of the following cash flow stream at a rate of 18.0%? Years: 0 CFs: $750 1 $2,450 2 $3,175 3 $4,400 a. $7,940.17 b. $6,071.90 O c. $9,263.53 O d. $7,628.79 O e. $7,784.48 Your uncle has $210,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, starting at the end of this year. He also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. For how many years can he make the $35,000 withdrawals and still have $25,000 left in the end? a. 8.90 O b.7.51 O c. 10.61 d.8.99 O e. 10.88 You plan to borrow $48,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? O a. $2,456.55 O b. $3,349.83 O c. $3,190.32 O d. $3,605.06 e. $3,030.80 a You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $260,000? O a. 83.01 O b.58.39 O c. 59.79 d. 74.57 O e. 70.35
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
