Levels Tought:
Elementary,Middle School,High School,College,University,PHD
Teaching Since: | Apr 2017 |
Last Sign in: | 4 Weeks Ago, 4 Days Ago |
Questions Answered: | 7559 |
Tutorials Posted: | 7341 |
BS,MBA, PHD
Adelphi University/Devry
Apr-2000 - Mar-2005
HOD ,Professor
Adelphi University
Sep-2007 - Apr-2017
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P6. Determine the present values (PVs) if $5,000 is received in the future (i.e., at the end of each indicated time period) in each of the following situations:
a) 5 percent for 10years
b) 7 percent for 7 years
c) 9 percent for 4 years
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P9. Assume you are planning to invest $5,000 each year for 6 years and will earn 10% per year. Determine the future value (FV) of this annuity if your first $5,000 is invested at the end of the first year.
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P10. Determine Present value (PV) now of an investment of $3,000 made one year from now and an additional $3,000 made 2 years from now if the annual discount is 4%.
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P11. What is the present value of a loan that calls for the payment of $500 per year for 6 years if the discount rate is 10% and the first payment will be made 1 year from now? how would your answer change if the $500 per year occurred for 10 years?
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P12. Determine the annual payment on a $500,000, 12% business loan from a commercial bank that is to be amortized over a 5 year period.
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P13. Determine the annual payment on a $15,000 loan that is to be amortized over a 4 year period and carries a 10% interest rate. Prepare a loan amortization schedule for this loan.
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P15. Assume a bank loan requirees an interest payment of $85 per year and a principal payment of $1,000 at the end of the loans 8 year life.
a) at what amount could this loan be sold for to another bank if loans of similar quality carried an 8.5% interest rate? that is, what would be the present value of this loan?
b) Now, if the interest rates on other similar quality loans are 10%, what would be the PV of this loan?
c) what would be the PV of the loan if the interest rate is 8% on similar quality loans?
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