For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today and held until the end of the deposit period if the interest is compounded annually at the rate specified. art Single CF Interest Rate Deposit Period (Years) - PV N A $900 6 B $1200 8 C $16,000 12 7 $40.000 15 I/Y 3% 6% 9% 10%

For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today and held until the end of the deposit period if the interest is compounded annually at the rate specified. art Single CF Interest Rate Deposit Period (Years) - PV N A $900 6 B $1200 8 C $16,000 12 7 $40.000 15 I/Y 3% 6% 9% 10%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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At a annual effective rate of interest i, payment of $100 from now,$200 two years from now and $100 four years from now have a total present value of $300. Calculate i A.11.7% B.13% C.14.5% D.15.8% E.16.9%
QUESTION 7 A bank makes a 30 year Fully Amortizing FRM for $2,000,000 at an annual interest rate of 4.125% compounded monthly, with monthly payments.Suppose inflation is 2% per year, compounded monthly. What is the real value of the 20th payment? O A. $9,375.48 O B. $9,050.06 OC. $9,692.99 OD. $6,523.11
What amount must be deposited at the bank today to grow to $600 in 4 years, assuming 10% interest compounded semiannually? Please identify which table you used.
Calculate the present value of the following single amounts. Future Value Annual Rate Interest Compounded Period Invested 1. $10,000 6% Annually 5 years 2. 7,000 8 Semiannually 8 years 3. 6,000 12 Quarterly 4 years
Problem #1: For the following cash flows, (receipt of 20,000 at t=0; payment of 120,000 at t-1; receipt of 100,000 at t-3; and receipt of 60,000 at t=5), various interest rates are applied: 4% for year 1: 6% for years 2 and 3, and 5% for years 4 and 5. Find the equivalent net value at t-5, i.e., F-? 4% 6% 6% 5% 5%| 20,000 60,000 -120,000 100,000
What rate, stated as an APR with annual compounding, will grow a single deposit today of $10,000 to a value of $13,465 in 3 years? A) 10.40% B) 10.43% C) 10.47% D)10.51%
What principal amount is equivalent to a withdrawal of 10,600 on the 2nd year, 4,000 on the 4th year, and a deposit of 5,400 on the 5th year and a final withdrawal of 9,800 on the 8th year? Interest rate is 5% compounded semiannually. Provide the cash flows and diagram.
Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.) Time Nominal Interest Compound Compound Principal Period (years) Rate (%) Compounded Amount Interest $8,000 4 12 annually Ex Enter a number.
None
Compound Interest Table Complete the following schedule for investments a through f by indicating the relevant factor from the present value or future value table and the final present or future value amount. Investment Compounding a. Annuity b. Annuity Annually Semiannually Semiannually Annually c. Annuity d. Single Payment e. Single Payment Semiannually f. Single Payment Semiannually Factor Answer $ a. $ Annual Interest Rate Amount 5% $2,000 4% 1,000 6% 14,000 •Note: Round your answers to the nearest whole dollar. •Note: Do not use a negative sign (-) with your answers. b. 5% 9,000 6% 16,000 4% 9,600 $ C. Investment $ Period d. $ Payment at Beg. or End e. of Period 2 years End 3 years Beginning 4 years Beginning 6 years n/a 5 years n/a 4 years n/a $ f. Future Value or Present Value Future Present Future Present Future Present
What is the future value of the initial $10,000 deposit after 5 years? We assume current interest rate is = 6%, compounded monthly. $13,552.6 $13,512.5 $13,277.6 $13,488.5
Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. Future Value $50,000 7.8% $225,000 6.9% $200,000 6.5% $275,000 3.9% $125,000 5.2% r compounding frequency annually semiannually quarterly monthly weekly time in years 6 15 10 $ 11 $ 13 $ periodic deposit (m) $ interest earned

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