Economic_Growth

Qrb/501 Week 4 Individual Assignment QRB/501 Week 4 Please, complete problems, exploration and questions below (total points-14). 1. Marshall, Ch. 6, problem 6-26 a, b, c & d (5 points total: 1.25 point per problem) Present value calculations. Using a present value table, your calculator or a computer program present value function, answer the following questions: a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6% Using my excel chart I get the following answer: PV - 4,000 Years 9 Discount rate 6% = $2,367.59 b. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%' I used my formula on this problem also in excel. PV - 15,000 Years 20 Discount rate 18% = $547.58 (or $548 if rounded out) c. How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 12 years, assuming that the account will earn 10% interest' The excel formula was used here also. PV - 300,000 Years 12 Discount rate 10% = $ 95,589.25 (or 95,589 rounded out) d. How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of seven years, assuming that the account will earn 12% interest' I used my excel formula to get answer. PV - 50,000 Years 7 Discount rate 12% = $ 22,617.46 (or 22,617 if rounded out) 2. Sevilla & Somers, Topic 6, exploration 8b 8. Consider the formula P=+67.38*(1.26). If we let P represent the population of Mexico in year t where... No comments Join Now For Free