Can someone help me understand econmey please!!! 1. A payment of $2,000 will be

Question

Can someone help me understand econmey please!!!

1. A payment of $2,000 will be realized today with additional payments of $1,000 at the end of each of the next 5 years. Assume a nominal interest rate of 20% is appropriate. Calculate the future value of all the payments at the end of five years from now.

2. An investor is scheduled to receive annual payment of $1,000 at years 1, 2, and 3. For annual interest rate of 10% compounded quarterly, calculate the time zero present value, and the year 3 future value of these payments.

3. An oil producer has purchased a pumping unit for $30,000, and the loan is to be paid back in 8 equal yearly installments of $5,319.92. Calculate the interest rate charged for this financing arrangement.

4. A retiree has a Roth IRA account with a current value of $2,000,000. If the total account value was invested today in a 25-year annuity based on 7.0% annual interest, What annual revenue will be available over the next 25 years?

Explanation / Answer

1)

the future value of all the payments at the end of five years from now

=2000*(1+20%)^5+1000*(1+20%)^4+1000*(1+20%)^3+1000*(1+20%)^2+1000*(1+20%)^1+1000*(1+20%)^0

=12418.24

the above is answer..

we do only one question based on Chegg rule

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