Kenneth R. Szulczyk
- If the U.S. economy grows 5% per year, how many years does the U.S. economy need to
double? - You will receive a $1,000 each year for two years. Your first payment starts in Year 0.
Calculate cash flow value to you today if the market interest rate equals 7% APR. - Every year, you save $700. How much would this money grow into after 3 years if the
market interest rate equals 3% APR? - Compute the present value if a friend repays a loan over 3 months with an annual interest
rate of 12% and the monthly payment of $100. First payment begins at the end of the first
month. - If you deposit $500 into a savings account that earns 5% APR for 30 years, calculate the
ending balance for the following compounding frequencies: annual, monthly, and
continuous. - If you are earning 16% APR on your investment that is compounded quarterly, compute the
effective annual rate. - You are saving for retirement, and plan to invest $2,000 every year into an ordinary annuity
that earns 7% APR. Compute the value of your annuity in 20 years. - You have save an ordinary annuity with a balance of $50,000. Calculate your annual
withdrawal payments if the annuity earns a 5% APR which you withdraw over 15 years. - Compute the monthly payment for a $500,000 mortgage for 30 years with a 7% APR.
- You reside in Malaysia and have an overseas bank account in Europe. You expect the
following annual payments and exchange rates. Malaysia uses the ringgits (rm) currency
while the Eurozone uses the euro, €.
Time Payments Exchange rate
0 2,000 € 4.00 rm / €
1 3,000 € 4.25 rm / €
2 4,000 € 4.50 rm / €
3 5,000 € 5.00 rm / €Calculate the net present value of your cash flows for a market interest rate of 4%.