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  3. 4. joe expects to receive $8,000 each year for the

4. Joe expects to receive $8,000 each year for the next 10 years beginning one...

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4. Joe expects to receive $8,000 each year for the next 10 years beginning one year from today. If he deposits each payment into an account earning 8% interest annually, what will be the balance of the account when the last payment is deposited? 5. Joe hopes to accumulate $250,000 with 10 annual deposits into a savings account earning 6% interest annually. What amount must Joe deposit each year to achieve his objective? 6. Sam and Sue purchase a $200,000 house using a down payment of $30,000 and a fixed rate mortgage for $170,000. The annual interest rate on the loan is 5% and the term is 30 years. What monthly payment is necessary to amortize this loan? 7. Rich Dad is considering purchasing a small retail property at a price of $840,000. Rich Dad has established a required rate of return of 14%. Based on the following cash flow forecast, what is the NPV of this investment opportunity? Cash flows: year 1 = 100,000; year 2-120,000; year 3 - 110,000; year 4 - 140,000; year 5 - 950,000. Should Rich Dad purchase this property

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