# Finance questions

Susan is planning to accumulate
\$400,000 by the end of 40 years by making 40 equal annual deposits. If she
can earn an annual compound rate of 20% on her investment, how much must each
deposit be in order to accumulate the \$400,000? Choose the closest answer.

\$20

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\$55

\$45

\$10,000

\$732.67

What is the
present value of a perpetuity that pays \$5,000 annually when the required
rate of return is 9.3%?

\$465

\$5,465

\$95

\$53,763

Find the
present value of \$40,000 to be received 5 years from now discounted at 8%
quarterly.

\$8,136

\$18,528

\$654,057

\$26,918

If a
borrower promises to pay you \$4,000 8 years from now in return for a loan of
\$2000 today, what effective annual interest rate is being offered?

8.29%

9.05%

no solution

7.42%

You purchase an
asset for \$1,000 today. Interest on the investment will be compounded monthly
at 8% for 6 years. What will be the value of this investment when it matures?

\$254,986

\$1,469

\$1,614

\$1,587