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:<\/p>\n
a. 5% for 10 years<\/p>\n
b. 7% for 7 years<\/p>\n
c. 9% for 4 years<\/p>\n
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.<\/p>\n
P10: Determine the present value (PV) now of an investment of $3,000 made one year from now and an additional $3,000 made two years from now if the annual discount rate is 4%.<\/p>\n
P11: What is the present value (PV) 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 one year from now? How would your answer change if the $500 per year occurred for 10 years?<\/p>\n
P12: Determine the annual payment on a $500,000, 12 % business loan from a commercial bank that is to be amortized over a five year period.<\/p>\n
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.<\/p>\n
P15: Assume a bank loan requires an interest payment of $85 per year and a principle payment of $1,000 at the end of the loan\u2019s eight-year life.<\/p>\n
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 PV of this loan?<\/p>\n
b. Now, if interest rates on other similar quality loans are 10%, what would be the PV of this loan?<\/p>\n
c. What would be the PV of the loan if the interest rate is 8% on similar quality loans?<\/p>\n","protected":false},"excerpt":{"rendered":"
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% for 10 years b. 7% for 7 years c. 9% Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-118787","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/118787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=118787"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/118787\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=118787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=118787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=118787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}