HELP PLEASE construction mangement hw question. QUESTION 19 How many annual paym

Question

HELP PLEASE construction mangement hw question.

QUESTION 19 How many annual payments are equivalent to a value of S300,000, 10 years from now, using the periodic interest rate is 8.5% compounded annually? A.$11,278 OB. $20,222 ° C. $29,067 O D.$30,241 QUESTION 20 What is the present value of twenty $8,000 annual payments that you need to make for your newly purchased house for the next twenty years at a periodic interest rate of 8.5% compounded annually? A. $1,565 B. $40,896 .$75707 0 D. $ 148,820

Explanation / Answer

19) Annual payments = A, n = 10 and i = 8.5%

A x (1 + 8.5%)9 + ..... + A = 300000

A = $ 20222.31

20) pmt = $ 8000, n = 20 and i = 8.5%

PV = 8000/(1 + 8.5%) + ..... + 8000/(1 + 8.5%)20

PV = $ 75706.7

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