When using present worth analysis, we assume that a machine that costs $5000 today can be expected to cost the same amount several years in the future. O True O False
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- AnswwwwerProperty taxes in a particular district are 2% of thepurchase price of a home every year. If you just purchased a $150,000 home, what is the present value ofall the future property tax payments? Assume that thehouse remains worth $150,000 forever, property taxrates never change, and a 4% interest rate is used fordiscountingFind each year saving as well!!!
- Suppose a person has a total credit card debt of $1,500$1,500 that has a 7%7% yearly interest rate. This person also has a savings account with $2,500$2,500 that pays 2%2% interest per year. Despite the net loss, the person keeps both.Calculate how many times the person appreciates the $1$1 of savings more than $1$1 of credit card debt if the person relates similarly to both values of percent paid and received. Enter your answer in the box below and round to two decimal places if necessary.ou decided to go and apply for a credit card at your local financial institution.The Prime rate currently announced on June 1 was 3.25%. You have goodcredit history and a FICO score of 700. The lowest rate that they can offer toindividuals is a 18.99% APR for a credit card that gives cashback on purchasesand rewards. You were offered 21.99% APR for the credit card. How did thelender determine or calculate what rate they should offer you?12:42 Expert Q&A Done e bond wi e wth S en and dd 1 y Howuh wod an be wilngt pay r ths bonda5 pr yr y d con te e the intrt and annly to d compunding when p yea The urnt worh ofhend oundt the ) Azero coupon bond will be worth $15,000 when it matures and is redeemed after 13 years. How much would an investor be willing to pay now for this bond if a 3% per year yield is desired? Click the icon to view the Interest and annuity table for discrete compounding when = 3% per year. The current worth of the bond is (Round to the nearest dollar)
- Please proceed with this problem In Year 2532, the world is “Exactly” different. Every second, minute, hour counts in comes to interest. Compute the future amount of an investment P 100,000 with an interest of 15% after 74 days, 2 hours, 6 minutes and 20 seconds.2. The cost for manufacturing a component used in intelligent interface converters was $23,000 the first year. There is a 30% chance the cost will increase by 2% per year, a 40% chance the cost will increase by 3% per year, and a 30% chance the cost will increase by 4% per year over the next 5 years. Calculate the expected value of the present worth at an interest rate of 10% per year.A man, pondering of retirement, determined that 300,000/year will be sufficientfor him to live without the need to work. Upon his retirement, howmuchmusthe invest in a bank that offers 5% interest rate to receive the amount everyyearcontinuously?
- Richard wants to ensure that at least some of his descendants are well educated in perpetuity. He is planning for 5 college students each generation at $125,000 each. He estimates that the generations will be spaced every 25 years, but the first generation will be in 10 years. If the trust will earn 6%, how much money should be deposited now? Please state the formula and the given. Step by step Solutions.urgentt!! hiiii please help me with part A thankyou so much to anyone!!!Asume you invest $3,500 today in an iveestment that promises to return $7,700 in exactly 10 years. a. Use the present value technique to estiate the IRR on this investment. b. if a minimum anual return of 9% is required would you recommed this investment.