Question: PLEASE ANSWER ALL PARTS Solve Using BA II plus calculator please show all computations for the following questions. Ex: 2nd -> FV -> etc. One
PLEASE ANSWER ALL PARTS
Solve Using BA II plus calculator please show all computations for the following questions. Ex: 2nd -> FV -> etc.
One of Owens Financial Planning Extremists' customers is the Northup family. The Northup family is planning to take a luxurious round-the-world cruise in 5 years and wants to consider different alternatives for saving the $250,000 necessary for this vacation.
1. What annuity payment at the end of years 1 through 5 would be needed at a 3% annual rate, compounded annually?
2. What annuity payment at the beginning of years 1 through 5 would be needed at a 3% the annual rate, compounded annually? 3. What annuity payment at the end of years 1 through 5 would be needed at a 3% annual rate, compounded monthly? 4. What annuity payment at the beginning of years 1 through 5 would be needed at a 3% the annual rate, compounded monthly?
6. Suppose we found an investment that promises to return 3% annually, compounded continuously. a. What single amount would need to be invested today? b. What annuity payment at the end of years 1 through 5 would be needed? c. What annuity payment at the beginning of years 1 through 5 would be needed?
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Suppose the Northup decide to invest the following amounts in order to save up the $250,000 they plan to spend for a vacation in 5 years. YEAR CASH INVESTED 0 $20,000 1 $25,000 2 $30,000 3 $35,000 4 $40,000 5 $50,000 8. If all the above-invested cash earns 4% annually, what is the future value at the end of 5 years? (Answer with Excel) 9. If all the above cash flows in years 1 through 5 remain the same as above, how much would the cash investment have to be at time 0 for the future value to be $250,000? Assume all cash flows earn 4% annually. (Answer with Excel)
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