Mark Welsch deposits $7,900 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $7,900 plus earned interest must remain in the account 3 years before it can be withdrawn. How much money will be in the account at the end of 3 years? (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.)
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- Suppose you save $2,800 ayear for 43 years into an investment account that earns 8.5% return, how much will you have at the end of the periods? Formula? Excel Function?Calculate the APR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Year Number Cashflow 0 -11000 1 3000 2 3500 3 2900 4 2800For the following economic calculations, write the factors (multipliers) that should be used,in (i) using the parameter values, and in (ii) calculate the result by showing your computations. Write the results you find in the spaces left. (Use factors for your calculations.)EXAMPLE: If you deposit $ 100 to a bank account that earns 8% annual interest, how much money will you have in this account after five years?(i)(F/P, 8%, 5) (ii)146.93100 * (F/P, 8%, 5) = 100 * 1.4693 = 146.93 TLa. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8% over six years from a bank. What is the amount of your current credit?(i) (ii)b. A bank is required to deposit money for four years with an interest rate 10%. The money deposited at the end of the first year is 6000 TL and the amount of money deposited in the next three years will be reduced by 500 TL every year. How much money will be in the bank at the end of the fourth year?(i) (ii)
- If you invest $25,000 today and eight years later receive $34,010.59, what annually compounded return have you earned? (answer in percentage, but without the % sign, e.g. 6.51% is entered as 6.51 - not 0.0651)An example of how to calculate net present value is done using the following. Imagine you have been given an investment opportunity wherein if you invest $1,200 today, you will receive $650 dollars at the end of each year for the next 5 years. You could separately choose to invest your money at 10% interest each year. Should you take the investment opportunity? To find the answer, use the NPV formula: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) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1, and PVAD of $1) (Use appropriate factor (s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Future Value I n ____________ $ 40,000 10% 5 $ 36,289 $ 65,000 _____ 10 $ 15,884 $ 40,000 8% ____ $ 46,651 $ 100,000 ______ 8 $ 15,376 ___________ 7% 20
- Please calculate this below (incl. the formula):a. What is PV of $100 received in year 10, with 1% discount rate?b. Hans made investment $10 million with interest rate 6% per annum. What is the value of Hans's investment after 4 years and interest compound annually.Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 15.3 percent and the standard deviation of this asset for the period was 33.2 percent. Use the NORMDIST function in Excel® to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) b. What is the approximate probability that your money will triple in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616.)You are offered an asset that costs $150,000 and has cash flows of $1,350 at the end of every month for the next 6years. Assume the cost of capital is 9percent per year.a. What is the IRR of the asset?b. What is the NPV of the asset? c. If your cost of capital is 12percent, should you purchase it? (Setup cash flows in Excel spreadsheets and uses the following Excel Financial functions, IRR, and NPV to derive your answers.
- What is the present value of an investment that pays $190 at the end of year 1, $107 at the year of year 2, and $235 at the end of year 3 if this investment earns 5% annually? your answer should be to the nearest dollar. For example, if your answer is id=mce_marker50, then input as 150.You are saving for a new house. You place $40,000 into an investment account each year for five years. How much will you have after five years if the account earns (a) 3%, (b) 6%, or (c) 9% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1)The future value of an investment will be $14,500 in 5 years. It is currently worth$11,000. What is the interest rate that will be earned? Answer with explanation computation formula with steps describe everything