An annuity pays $500 per year for 8 years beginning one year from today. What is the remaining value of the annuity immediately after the third $500 payment? Assume an interest rate of 2% APR.
A) $2,357 B) $2,404 C) $3,236 D) $3,663
You have decided to fund a growing perpetuity to support the Boston Harbor Islands and would like the first payment to be made in 6 years. Interest rates are 6% APR and you would like the payments to increase by 2% each year. If you invest $11,210 today, what will the second payment (the payment in year 7) be?
A) $600 B) $612 C) $566 D) $636
You expect to receive 10 annual payments of $10,000. You will receive the first payment today. After that the payment will increase 4% per year for the remaining 9 years. Assuming a 6% interest rate, what is the value of the payments today?
A) $86,720 B) $88.772 C) $90,189 D) $91,923
Can i get some help on these three as soon as possible? I’ve got exam tomorrow…