Problem 2: The company Argentinian Grill has a 7-year loan $ 23.500 with the loc

Question

Problem 2:

The company Argentinian Grill has a 7-year loan $ 23.500 with the local bank. His plan is to start paying the loan in seven equal installments starting today. If the interest rate
It is 8.4%, calculates the annuity payment.

Problem 3:

You currently have 25 and want to retire at the age of 65. As a complement to other sources of retirement, you could deposit $ 3,000 at the end of each year in an IRA. This financial instrument would earn 9.75% over the next 40 years.

a) How much money will accumulate at the end when you turn 65?

Problem 4:
Solve each situation separately, where P = principal; r = interest rate; t = time in years; I = interest and future value FV =

A) P = $ 10.800; r = 6.50%; t = 7 years; I =?

B) I = $ 1.550; t = 11 months r = 7.75%; P =?

C) P = $ 30.500; r = 6.75%; t = 10; VF =

D) FV = $ 320,000; r = 5.40% compounded monthly; t = 30; P =?

b) If you decide to wait 10 years to begin to deposit, how much money will accumulate to reach age 65?

c) Discuss the impact of waiting 10 years on the accumulated amount.

Problem 5:

You want to start a bakery business. For this, you will need a capital of $ 75,000 to start operating. If you have to operate within four years. What sum must now invest 12% quarterly composite, the amount needed to keep and operate your business?

** NOTE** IT IS VERY IMPORTANT TO COMPLETE THE ENTIRE EXERSICE. INCLUDE ALL THE CALCULATIONS, PLEASE, THANK

Explanation / Answer

1)

K = N-1   
Present value of annuity = [(Annual payment)/(1 +interest rate/100)^k] + Annual payment   
k=1

K = 7-1   
23500 = [(Annual payment)/(1 +8.4/100)^k] + Annual payment   
k=1

Annual payment = 4221.065

2)

FV of annuity = C* ( ((1 + i )^n -1)/i)

C = Cash flow per period

i = interest rate

n = number of payments

FV = 3000 *[((1+ 9.75/100)^40 -1)/(9.75/100)]

= 1240676.405

Amount saved after waiting for 10 years

FV = 3000 *[((1+ 9.75/100)^30 -1)/(9.75/100)]

= 470709.486

impact of waiting 10 years is that accumulated savings are lesser by (1240676.405 - 470709.486) = 769966.919

Problem 4

A) Future value = present value *(1 + interest rate)^n

= 10800*(1+6.5/100) ^7 = 16783.054

B) Interest = Principal * ( 1 + interest rate)^n - principal

1550 = Principal ((1 + 0.0775)^11/12 -1)

Principal = 21886.9567

C)

Future value = present value *(1 + interest rate)^n

= 30500*(1+6.75/100) ^10 = 58610.938

Please ask remaining parts seperately

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