For the given cash flow, if the equivalent uniform annual payments is $2000 and the interest rate is 4% per year. End of Year Cost 2A 2A+30 ZA+60 JA+90 2A+120 ZA+150 2A+180 ZA+210 2A+240 Determine the amount of (A) ? Determine the equivalent present value?
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- (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%For the given cash flow, if the equivalent uniform annual payments is $5000 and the interest rate is 25% per year. End of 1 3 4 6. 7. Year Cost 2A 2A+30 2A+60 2A+90 2A+120 2A+150 2A+180 2A+210 2A+240 Determine the amount of (A) ? Determine the equivalent present value?
- Find the annual worth (AW) that is equivalent to the following cash flow diagram, if the interest rate is 8% per year. 2 3 4. 6. 7. Time (year) 3000 4000 5000 0. 2000 Cash flow ($) Answer:Suppose you are given the following cash flow stream. If the interest rate is 20 percent, what is the future value of this cash flow stream at the end of Year 3? Year CF 10 $0 1 $344 2 $314 3 $290 Enter your answer rounded off to two decimal places. Do not enter $ in the answer box.What is the present value of the following cash-flow stream if the interest rate is 4%? Year 1: $170; 2: $370; 3:$270
- Consider the following cash flows: Year Cash Flow 2 $ 22,900 3 40,900 5 58,900 Assume an interest rate of 9.7 percent per year. a. If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)What is the future value of this cash flow stream: $100 at the end of 1 year, $150due after 2 years, and $300 due after 3 years, if the appropriate interest rate is 15%?($604.75)For each of the following situations involving single amounts, solve for the unknown (?). Assume that interest is compounded annually. (i = interest rate, and n = number of years) Present Value Future Value i n1. ? $ 40,000 10% 52. $ 36,289 65,000 ? 103. 15,884 40,000 8 ?4. 46,651 100,000 ? 85. 15,376 ? 7 20
- Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of that future sum. Assuming a positive interest rate (required rate of return), which of the following is a possible number for the present value of the $2500? Even without knowing the interest rate, it is possible to answer this question. O A. $2742.53 B. $2632.45 O C. $1967.25 OD. $2572.50 O E. None of the above is a possible number.Compute the present value if future value (FV) = $4892, interest rate (r) = 14.0%, and number of years (t) = 16.Given the following information, calculate the rate of return. price = $501.88time to maturity = 10 yearsannual payment = $100type = ordinary annuity