SOLUTION: Mr. Khaild will receive $8,500 a year for the next 15 years from his trust. If a 7 percent interest rate compounded annually is applied, what is the present value of the future pa

Question 1160189: Mr. Khaild will receive $8,500 a year for the next 15 years from his trust. If a 7 percent interest rate compounded annually is applied, what is the present value of the future payments if first receipt occurs today?
Q3. An annuity makes 25 annual payments of Rs. 1,000 with the first payment coming today. What the future value of this as of 25 years is from now if the interest rate is 9% compounded annually?
Q4. If at the end of each quarter a deposit of Rs. 500 is made in an account that pays 8% compounded quarterly, what will the final amount be after five years?
Q5. Your client is 40 years old and wants to begin saving for retirement. You advise the client to put Rs. 5,000 a year into the stock market. You estimate that the market’s return will be on average of 12% a year. Assume the investment will be made at the end of the year. How much money will she have by age 65 ?
Q7. A company purchased a building and has obtained a Rs. 190,000 mortgage loan for 20 years. The loan bears a compound annual interest rate 16 percent and calls for equal annual installment payments at the end of each year. What is the amount of the annual payment?

Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
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