From the following information compute the zero-rate for 1.5-years.

Q: Give the number of periods, n, and the interest rate per period, i, for the following situation.…

A: n = number of periods i = interest rate per period

Q: Compute the simple interest INT for the specified length of time and the future value FV at the end…

A:

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: Rate of return is the return earned on an investment. It is always expressed in percentages. Rate of…

Q: annual, semiannual, and quarterly compunding periods, (1) calculate the future value i f$4000 is…

A: Future value can be computed using FV function in excel. FV function computes interest rate for…

Q: Given the rate per compounding period, find r, the annual rate 0.25% per month

A: P =R / M Here P = Rate per compounding period R= Annual rate M=Times amount compounded

Q: What general rule can be developed concerning maximum values and compounding intervals within a…

A: The question is based on the concept of future value calculation with compounding intervals, by use…

Q: Determine the present value if $5,000 is received in the future (that is ,at the end of each…

A: Present Value: It is the present worth of the future annuity cash flow stream. Present value is…

Q: what is the equivalent annual cost of the maintenance?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: What is the rate (in %) compounded semi-annually if 132511 accumulates to $398053 in 9 years and 3…

A: Given, Amount deposited 132511 Amount accumulated 398053 Term is 9 years and 3 months which is 9.25…

Q: Indicate whether the given statements is true (T) or false (F): "For a specified value of F at EOY…

A: The present value is the current value of a future cash flow at a certain rate of discounting rate…

Q: At what rate compounded monthly will P4,222 accumulate to P16,444 in 2 years and 10 months?

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…

Q: Which alternative in the table below should be selected when the MARR = 7% per year? The life of…

A: Internal rate of return is the discount rate at which the present value of the future cash flow and…

Q: nual, semiannual, and quarterly compunding periods, (1) calculate the future value if $5000 is…

A: Future value can be computed using FV function in excel. FV function computes interest rate for…

Q: assuming a rate of 10% annually, find the FV of 1,000 after 5 yearas

A: The formula for the calculation of Future value is as follows: Future value=Present…

Q: A loan of L is being amortized with payments at the end of each year for 10 years. If v = 22/30,…

A: Loan Repayment:  A lump-sum payment that is made in conjunction with a loan, mortgage, or commercial…

Q: What is the present value of $2,000 received today,  $2,500 received at the end of each of the next…

A: Present value of cashflow for any year = Cashflow for that year/(1+ discount rate)^time Cashflow for…

Q: Given the 72 rule a rate is given 6% per annum compounded continuously. express the difference in…

A: Interest is an extra amount which is received on deposited amount and its increase the value of…

Q: If you save $580 at the beginning of every six months for nine years, for how long can you withdraw…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: What is the effective rate corresponding to 18% compounded daily? Take 1 year is equal to 360 days.…

A: The annual percentage rate (APR) is 18%. The compounding frequency is daily.

Q: he period in which the amount of 10 000 dinars becomes 13 400.96 if the nterest is added at the end…

A: In this we need to use present value and future value formula.

Q: Approximately, what is the value of (P) if A=620, n=21 years, and i= 21.5% per year?

A: Given information: Annuity payment (A) is 620 Number of years is 21 Interest rate is 21.5%

Q: What parameter is this question asking for? What deposit made at the end of each month will…

A: Annuity is the equal periodic cash flows over specific time time period. When the payment is due at…

Q: Find the final amount in the following retirement account, in which the rate of return on the…

A: The future value function or concept can be used to determine the future value of a present sum, or…

Q: The procurement of a solar system requires a down payment of $119,628 at t=0 and a payment of $8,493…

A: Present value of an investment refers to the sum total value of all expected future cash flows in…

Q: Find the final amount in this retirement account, in which the rate of return on the account and the…

A: We can calculate the retirement amount with the help of following formulae:   =FV (RATE, NPER,PMT)…

Q: Find the value of the following, if the present value is 1,100 at 9% converted annually for 58…

A: This question is based on the concept of time value of money which says that the value of $1 is…

Q: Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-,…

A: Unbiased Expectations Theory: This theory implies that the current interest rate (long-term)…

Q: Label the following look-back periods for 20XC by months. A B C D 20XB 20XA

A: The lock-back period means the period that is used to determine whether the organization fulfills…

Q: (A/F,15% monthly,3years) has a value equals to

A: (A/F,15% monthly, 3years) denotes sinking fund deposit factor i = 15% per annum = 1.25% per month n…

Q: Consider a savings account paying an APR of 4% compounded semi-annually. Use the Rule of 72 to…

A: The rule of 72 is used to calculate the number of years in which the investment amount gets double…

Q: Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the…

A: Given: 1R1 = 2.50%, E(2r1) = 3.75%, E(3r1) = 4.25%, E(4r1) = 5.75%

Q: find the final amount in this retirement account, in which the rate of return on the account and the…

A: Interest rate is 7.9% compounded quaterly for first 20 years Interest rate is 6.8% compounded…

Q: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…

A: Given: Interest rate = 2.2% Compounding continuosuly.

Q: For an interest rate of 1% per quarter, determine the nominal interest rate per (a) semiannual…

A: The nominal rate of interest is the annual rate which is charged on the securities. The nominal…

Q: Find the present value of the following annuities: 100 starting at time 8 and increasing by 100…

A: Present value of a future amount With future value (FV), periodic interest rate (r) and period (n),…

Q: The effective rate for a continuous compounding rate of 17,5% per year, is [1] 16,13%. [2] 21,08%.…

A: An effective rate is the rate at which the amount has increased during the period.

Q: Determine the AW values for one and two life cycles at 15 % per year.

A: AW is the acronym and stands for the annual worth which means it is the cash flow which is the equal…

Q: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…

A: Here, Interest Rate Per 6 Month is 2.2% Therefore, Annual Interest Rate is: =2.2% ×2=4.4%…

Q: Regular equal amounts of R1200 are deposited into a savings account every three months for six…

A: INTRODUCTION Bank provides interest on the deposits which are deposited by individuals. This…

Q: Find the compound amount on $3,000,000 after 16 years and 3 months, if the rate is (.06, m = 4)

A: Principal (P) = $3000000 Compounding frequency (m) = 4 (Quarterly) n = 16 years 3 months = 65…

Q: Complete the following using present value. Amount $6,600, Time 10 years, Rate 2%, Compounded…

A: Calculation of period used: Answer: Period used is 20. Calculation of period used:

Q: The 1-year and 2-year zero rates are 4% and 6% per annum with quarterly compounding. (a)  What is…

A: The formula for converting discrete compounding into continuous compounding is given below:- Rc =…

Q: Using either logarithms or a graphing calculator, find the time required for the initial amount to…

A: Solution:- We know, future  value means the amount to be receivable at the maturity after compounded…

Q: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…

A: Here, Semi Annual Interest Rate is 2.2% Therefore, Annual Nominal Interest Rate is : =2.2% *2 =4.4%…

Q: The maintenance on a machine is expected to be P3,500, P7,000, P10,500, and P14,000 for the second,…

A: We will have to use the concept of time value of money which states that worth of money changes with…

Q: Considering the amortisation schedule, what is the percentage, rounded to two decimal places, of the…

A: First we need to know the net home payable amount   Edwill Purchased a new home  Cost is R110790000…

Q: Determine how much is in each account on the basis of the indicated compounding after the specified…

A: As per the guidelines we are allowed to solve the first three parts only The account value can be…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.