problem1. Nico creates annual end-of-year payments of $5,043.71 on a four-year loan with an interest rate of 13 percent. The original principal amount was a $24,462.
a) $15,000
b) $3,092
c) $20,175
When a United States Savings bond can be purchased for $29.50 and has a maturity value at an end of 25 years of $100, what is annual rate of return on the bond? Answer 5 percent 6 percent 7 percent 8 percent which of the following is NOT an ex of annuity cash flows? Answer Regular equal monthly rent payments. Equivalent annual deposits in a retirement account. The $50 of gasoline you put in your car every two weeks on payday. All of the exs above are annuity cash flows.
problem2. You have the opportunity to buy mineral rights to a property in North Dakota with the anticipated annual cash flows of $10,000 per year for eight years. When you discount these cash flows at a rate of 12% per year, what are these cash flows worth today when the cash flows take place at the end of each period? Answer $55,637.57 $49,676.40 $80,000.00 $122,996.93 which of the following actions will diminish the present value of an investment? Answer Decrease the interest rate. Diminish the future value. Diminish the amount of time. All of the above will diminish the present value.