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- 6. Find the equivalent present worth of the following cash flow if i = 10% (compounded annually). 0 1 2 $1000 3 4 $1000 5 6 7 8 9 $1000 10 $4000 YearsA milling machine can be bought with a downpayment of 178,901 and equal installment of 16,593 each paid at the end of every quarter for 16 quarters. If money is worth 20 % cpd. quarterly, find the equivalent cash price of the machine.Determine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, i, varies as indicated. P=? ܂ $1,000 i₁ = 8% 1 $2,000 The present equivalent value is $ 2 = 15% 2 i3 = 12% $1,000 ig = 8% 3 Years ܗܘܢ ܗܝ (Round to the nearest cent.) 4 $2,000 15 = 8% 16 = 12% 5 Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 12% per year. 6
- 8. Consider a series of cash flows that begins with $1000 received at the end of year 7. At the end of year 8, you receive $1100, and $1200 at the end of year 9. This pattern of increasing cash flow receipts occurs through the end of year 20. What is the present equivalent value (time 0) of this cash flow series when the interest rate is 8% per year?Book sales of a popular author are expected to start at 500,000 books in the first month. This numbe is expected to decrease by 8,000 books each month over the three-year study period. The author receives $5 per book sold. If the author places all monies received in a bank account eaming 1% interest per month, what is the present (time 0) equivalent value of the three years of book sales? Sales money is received at the end of each month and the first receipt will be one month from today.(30 points) The following cash flow diagram indicates the monthly payments you will have in the future. Assume that the interest rate is 12% per year. $3.200 $2.800 $2,400 $2,000 16 17 18 19 20 21 a) (15 points) What annual amount should you save for the first 12 months to complete the following payments starting from 18th month, if you expect your parents to also deposit into your account $1000 at the beginning of month 2? b) (15 points) Explain how your answers to (a) will change if the interest rate increases. Write your comments in your words.
- A sum of $10,000 now (time 0) is equivalent to the following cash-flow diagram: 0 $10,000 $2,000 1 2 $2,000 TI 4 5 6 End of Year $3,000 $B 3 What is the value of $B if the annual interest rate is 4%? 7 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.You decide to place all your savings of $1,234 into a fund that has a modest annual interest rate of 0.33% for the time you are at UTC for 4 years. What is the balance of the account at redemption?below, where the interest rate is 10% per year. Calculate the present equivalent at time N=0 of the following series of cash flows in the figure [Use a uniform gradient amount (G) in your solution] 4 P Answer: $710 $610 $510 $410 $310 $210 0123 4 5 6 7 8 End of Year
- In saving for a future major purchace, Oksana has been making uniform deposits of $5,000 per year in an account that has earned variable annual interest rates of in-12-13-5% and i=15-7% (see cash flow diagram below). How much does she have in the account immediately after making the last deposit? ATT The account will have ! (Round to the nearest dollar) GUILDCurrent Attempt in Progress The Lahiri family rents a room in their home on Airbnb. They deposit all of the money that they earn into a vacation fund that earns 2% that is compounded annually. Their revenues for five years of their business are shown below. Year Revenue 1 $1,150 2 $800 3 $1,300 4 $1,600 $600 In year six, they did not rent their room due to extensive remodeling. How much would be in the account at the end of year 6? Click here to access the TVM Factor Table calculator. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ±5.Economics Assume i = 8%/year. How much money do I have to deposit today (end of year O) in an account that will generate $25000 per year from year 10 to infinite. Please show all steps. Will thump up