Please enter answers into appropriate answer boxes in attached document. Be prepared to re-do work if innacurate/if you gave me a wrong answer for one of the questions submitted by you. The assignment consists of 22 questions. Chapter 6 homework 3 [removed] [removed] 1. An investment offers $7,100 per year for 20 years, with the first payment occurring one year from now. If the required return is 7 percent, what is the value of the investment? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Present value $ [removed] What would the value be if the payments occurred for 45 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Present value $ [removed] What would the value be if the payments occurred for 70 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Present value $ [removed] What would the value be if the payments occurred forever? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Present value $ [removed] 2. If you put up $44,000 today in exchange for a 6.75 percent, 14-year annuity, what will the annual cash flow be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Annual cash flow $ [removed] 3. If you deposit $5,500 at the end of each of the next 15 years into an account paying 11.30 percent interest, how much money will you have in the account in 15 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Future value $ [removed] How much will you have if you make deposits for 30 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Future value $ [removed] 4. You want to have $74,000 in your savings account 11 years from now, and youre prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.30 percent interest, what amount must you deposit each year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Deposit amount $ [removed] 5. The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $29,000 per year forever. If the required return on this investment is 5.30 percent, how much will you pay for the policy? (Round your answer to 2 decimal places. (e.g., 32.16)) Present value $ [removed] 6. The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $20,000 per year forever. Suppose a sales associate told you the policy costs $465,000. At what interest rate would this be a fair deal? (Round your answer to 2 decimal places. (e.g., 32.16)) Interest rate [removed]% 7. Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) : Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 9.8 % Quarterly [removed]% 18.8 Monthly [removed] 14.8 Daily [removed] 11.8 Infinite [removed] 8. Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) : Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) [removed]% Semiannually 11.2 % [removed] Monthly 12.1 [removed] Weekly 9.8 [removed] Infinite 13.5 9. First National Bank charges 14.2 percent compounded monthly on its business loans. First United Bank charges 14.5 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) EAR First National [removed]% First United [removed]% As a potential borrower, which ban…
Looking for solution of this Assignment?
WHY CHOOSE US?
We deliver quality original papers |
Our experts write quality original papers using academic databases.We dont use AI in our work. We refund your money if AI is detected |
Free revisions |
We offer our clients multiple free revisions just to ensure you get what you want. |
Discounted prices |
All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount |
100% originality |
We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity.We have ZERO TOLERANCE TO USE OF AI |
On-time delivery |
We will deliver your paper on time even on short notice or short deadline, overnight essay or even an urgent essay |