2. * (Inspired by CT1 exam April '09) A company has agreed to rent a warehouse for 30 years. The rent will be paid quarterly in advance and will increase every three years at the rate of 3% per annum compound. The initial rent is set at £1,200,000 p.a. with the first payment duo immodiatoly Calculate the NRW of th fintoroct of 5% na

Q: (01) FIND (X) FOR THE SHOWN CASH-FLOW DIAGRAMS. USE: i. = 9%. SHOW CALCULATIONS. 0 2 3 4 250 (each)…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000. Cash…

A: At Year 5, Cash Flow = 5,000 series increase by 7%  total 9 cash Flows in gradient series FV at Year…

Q: . Given the cash flow diagram as shown, if interest is 5%, determine the equivalent total present…

A: Interest rate = 5% Cash Flows Year 1 = 5000 Year 2 = 4500 Year 3 = 4000 Year 4 = 3500

Q: .ompute for the effective interest rate per semi-annual Nominal rate = 28.9% compounded semi-annual…

A: Effective Interest Rate = (1+ i/n )n -1  Where , i = interest rate  n = Compounding periods  Given ,…

Q: 5. A loan of P5, 000 is made for a period of 15 months, from January 1 to March 31 the following…

A: Given information,  Principal amount (P): P5,000 Interest rate (r): 25% Time period (t): 15 months~…

Q: How much do you have to deposit now (with a second deposit in the amount of $600 at the end of the…

A: Year Cash Flow 0 a 1 -600 2 250 3 250 4 250 5 500 6 500 r = 5%

Q: 6.1 What is the difference between the sums of an annuity due and an ordinary annuity for the…

A: An annuity is a contract that provides a series of regular, periodic payments to an individual or…

Q: What is the equivalent nominal rate of interest of 0.122% compounded quarterly if converted monthly?

A: Given: Interest Rate per period (r): 0.122% Compounding per period (m) = 4 New Compounding per…

Q: Using the following spot rates for the following 4 strips of a 2-year semi-annual 3% coupon T-Note,…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: . What is the economic value of home production based on a salary of $4,000/month for 35 years…

A: Answer; Given   Rate of interest = 3% Per annum = 3/12 per month = 0.25 %   Number of…

Q: Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000. Cash…

A: We have, Cash flow time 5 is $ 5000 Annual growth in cash flow ia 7% Number in cash flows is 9…

Q: Compute the present value of a periodic expense that occurs every year (the end of the year) for 8…

A: 3. Annual expense = 3475 $ Annual interest rate = 3.75 % Time = 8 years Present value =   Where r =…

Q: Capitalized cost: Select one: O a. is the future sum needed to provide a perpetual series of cash…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4…

A: When a loan is taken, and has to paid in equal payments over a period of time, the amount of loan is…

Q: You have been making monthiy deposits of $5 into a savings account with monthly compounding for 3…

A: Given,  Monthly Deposit : $5 Time : 3 years APY : 1.7% To calculate the APR compounded monthly from…

Q: You are paying into a mutual fund that earns7% compound interest. If you are making an…

A: Mutual fund is a firm that gets money from lender/investors & invest them in marketable…

Q: ty monthly deposits are made into an account paying 12% nominal interest per year compounded…

A: Payment each month = ? Time = 5 years Interest rate = 12 % compounded monthly Monthly rate – 12 / 12…

Q: You take out a 30 year mortage at an annual interest rate of 6% which you will repay in monthly…

A: A mortgage is a type of loan specifically used to purchase real estate, such as a home or a piece of…

Q: Using an interest table gradient series factor, write an equation to find the Present Worth (at EOY…

A: We have,Interest rate (i)= 7%Initial outflow = -1000Uniform Gradient Amount (G): Uniform gradient…

Q: 1sider the following cash flow: me Amount 1 3.

A:

Q: What cash payment is equivalent to making payments of $1551.00 at the end of every year for 7 years…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Miss Pagtalunan owes Mr. Reyes 400,000 due today. Miss Pagtalunan offers to pay the principal plus…

A: Given information,  Principal amount: 400,000 Time period: 3 years Miss Pagtalunan's Interest rate…

Q: Calculate the Present worth of the following cash flow. Consider 6% annual interest rate, compounded…

A: Annual Interest Rate = 6% or 0.06Compunded seminuallyCash flows are given below:YearCash…

Q: 6. If the ncminal interest rate is 3%, how much is $5000 worth in 10 years in a continuously…

A: Future value = present value *e(i*t) =5000*2.7183(0.03*10) =5000*2.7183(0.3) =5000*1.3499 =6749.5

Q: Draw a cash flow diagram for someone who gets subsidized student loans their senior year: Receive…

A: Cash flow:The internet amount of cash or coins equivalents that enters and exits a business or…

Q: The equivalent compounding discount rate to the 5% compounding interest rate if the time of the…

A: Given an  investment with a  compounding interest rate semi-annually for , determine the equivalent…

Q: can you help me with this qustion  Gina deposits her inheritance into an account earning interest…

A:

Q: A deposit of $3111 was invested for 3 years at 3.88% p.a. compounded semi-annually. What is the…

A: The money put into assets or business to generate revenue in the future is known as investment. It…

Q: Calculate, to the nearest cent, the present value of an investment that will be worth $1,000 at the…

A:

Q: For the given cash flow of geometric gradient, if A= $2,000 , the present value, P is closest to:

A: P = A[1-(1+g)n(1+i)-ni-g]where g = 15%i = 12%

Q: Q1- Subject Engineering Economy i) What single payment at the end of year 5 is equivalent to a…

A: Both the questions are solved in the upcoming steps

Q: If a bank gives an interest rate of 5% annually. What is the sum of money after 2 years if the…

A: Interest rate of bank = 5% Difference between compound interest compounded annually and the simple…

Q: Adam is planning for hnis retirement. Starting Jahuary 2022, he will deposit $2,000 to a pension…

A: Given, Deposit- $2000 Time- 20 years ROI-12%

Q: A businessman wishes to have an amount of P2769.84 after 5 years. He deposited P500 each year into a…

A:

Q: Calculate the following rates a) the nomial rate compaunded monthly which equivalent to 9 %.…

A: Effective annual rate (EAR) = [1 + (r / m)]m - 1, where r: Stated annual nominal rate and m: Number…

Q: A house and lot can be acquired at a down payment of Php500,000.00 and a yearly payment of…

A: # Purchased a house # down payment = 500,000 # Installments = 100,000 at the end of each year for 10…

Q: 3- Determine the (P, F, A) equivalent value of the given cash-flow at 10% interest rate. 400 300 300…

A: For the above question, we have to find the present value future value, and annual worth

Q: Here comes an investment firm. He offers you to deposit P 2,500.00 at the end of each month for 5…

A: Monthly deposit (P) = P 2500 Period = 5 Years Number of monthly deposits (n) = 5*12 = 60 Monthly…