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1) You are scheduled to get annual payments of= $5500 for each of next eight years. Discount rate is 11.5%. Find out the difference in current value if you get these payments at beginning of each year rather than at the ending of each year?

2) Theresa adds= $1500 to her savings account on first day of each year. Marcus adds= $1500 to his savings account on last day of each year. They both earn 6.7% annual interest. Find the difference in their savings account balances at end of 36 years?

3) Some time ago, Jasmine bought 11 acres of land costing= $35000. Today, that land is worth at $211800. How long has she owned this land if price of land has been rising at 5.6% per year?

35000=211800/(1.056)^t
6.05=(1.056)^t
Ln(6.05)/ln(1.056)=T

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Basic Finance, Finance

  • Category:- Basic Finance
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