Q: what is the future value of cash flow of ¢2,000.00 for the first month and a monthly rise of 0.1%…
A: 1st deposit =2000 Increase per month = 0.1% = 0.001 Increase Factor(r) = 1+0.001 = 1.001 Number of…
Q: What will be the future value of $5 000 invested for six years at 8% per annum compounded quarterly
A: Formula for finding the future value is P(1+i/4)^(t*4) P = $5000, i= interest = 8% , t = time = 6
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A: FV = PV * (1 + i/n)^(n * Years) Where FV = Future Value = $18276.04 PV = Present Value = $15000 i =…
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A: Given information : Deposited amount = $25,000 Interest rate on savings = 5% Inflation rate = 3%…
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A: FUTURE VALUE is the value of current cashflow at the future date compounded at the specified rate.…
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A: When the periodic cash flows are constant for the period, it is known as annuity. Annuity is…
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A: Formula: Future value = Present value ( 1+Rate)^years
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A: First year amount = P 40,000 Annual decrease = P 3000 Interest rate = 14% Period = 5 Years
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A: Future Value(FV) is value of any present amount in future period. It is computed by compounding that…
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A: Future Value Future value (FV) is the value of a current asset at a future date based on an assumed…
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A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: If P100 is placed in an account that requires a rate of return of 4%, compounded quarterly, what…
A: Investment = 100 Quarterly Compounding Required Return = 4%/4 =1% per quarter Time Period = 5…
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A: Compound interest is when we invest the interest back and earn even more interest as a result.
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A: Annuity refers to a constant stream of payments made at regular intervals for a defined period. The…
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A: As we are finding the final amount, that will be in future, thus we will use the future value…
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A: As per the guidelines we are required to solve first question only when multiple questions are…
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A: Present value is referred to as the present worth of the investment amount which is discounted at an…
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Q: 1) A company is expected to result 2900$ savings first year then increase by 200$ annually, if the…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Suppose a $4400 investment earns 5.6% compounded annually for 6 years. Which statement is true? a.…
A: The interest rate is the rate at which the investment will earn money over the period of investment.
Q: Which among the following is the present value of Php 40, 000 due in 6 years if money is worth 10%…
A: present value=future value1+rn r=rate of interest n=number of years
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- You plan to invest in an account which pays 3.5% compounded continuously. If the investment period is for 12 years, then A(P) = P e 0.035 · 12 = P e 0.42 gives the total balance of P dollars. Find a formula for A'(P). Find and interpret A'(4000). Compare the approximation to the actual change. a. b. С. a. A'(P) =| (Type an exact answer in terms of e.) b. A'(4000) = %3D (Round to the nearest cent as needed.) Interpret A'(4000) = 1.52 O A. The future value of a 13 year investment of $4001 will be $ more than the future value of a 13 year investment of $4000. O B. The future value of a 13 year investment of $4000 will be $ more than the future value of a 13 year investment of $4000. O C. The future value of 12 year investment of $4000 at 4.5% will be $ more than the future value of a 12 year investment of $4000 at 3.5%. O D. The future value of a 12 year investment of $4001 will be $ more than the future value of a 12 year investment of $4000. c. A(4001) – A(4000) = dollars per year.…Complete the table to find the amount P that must be invested at rate r to obtain a balance of A = $300,000 in t years. (Round your answers to the nearest cent.) r = 7%, compounded daily t 1 10 20 30 40 50 P $ $ $ $ $ $The current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(rt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?
- Attempt History Current Attempt in Progress Wildhorse Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment: Cost Old Equipment Accumulated depreciation Remaining life Current salvage value Salvage value in 8 years Annual cash operating costs $80,240 $40,300 8 years $9,920 $0 $35,100 Cost New Equipment Estimated useful life Salvage value in 8 years Annual cash operating costs $38,000 8 years $4,800 $29,900 Depreciation is $10,030 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value of $4,800.b1. F = Pert , which assumes continuous compounding, says that the Future value (F) of an amount (P) invested today at an annual rate (r), expressed as a decimal for the time (t), in years is given by the function. Thus if you invested $100 at the annual rate of 5 1/2% for 6 years and 3 months you would get back (at the end of the time), F = $100e(0.055)(6.25) = $100e(0.3438) = $100(1.4102) = $141.02. If you invest $15000 today, what amount does the formula say you will get back if you leave it for 5 years and 3 months in a savings account paying 4 1/2% annually?What amount of money invested today at 3.54% compounded monthly will have an accumulated value of $452,000 in 6 years from now. Round all answers to two decimal places if necessary. A P/Y = C/Y = N = I/Y = PMT = $ FV = $ PV = $
- You plan to invest in an account which pays 4% compounded continuously. If the investment period is for 7 years, then A(P) = Pe0.04-7-Pe028 gives the total balance of P dollars. a Find a formula for A'(P) Find and interpret A'(8000) b. c. Compare the approximation to the actual change..When an initial amount of P dollars is invested at r% annual interest compounded n times per year, the value of the account (4) after years is given by the equation nt A=P(1 + =)** n Write an equation that represents the value in an account that starts out with an initial investment of $5000 and pays 10% interest compound monthly. Then use that equation to fill the table and use the table to graph the equation. Years (1) Value (4) 0 5 10 15 20 oo → KI1. two sources of income with equal present valuec C at time 0 provide annual payents in arrears during 10 years. The first product, i.e. Product 1, pays 50,000 - 2,000k, where k is measured in years, and the second product pays a constant annual amount of b. The present vaues are calculated using a force of interest of delta(t) = 0.05 - 0.002t, where t is measured in years. derive a general expression for the pv of each income stream in function of k, C, and b and without integrals.
- At what nominal rate compounded semi-annually will Php5,000 amount to Php6,000 in 2 years? What is the effective rate? Round off your answer into 2 decimal places. a. Nominal rate ________% b. Effective rate ________%The function f(x) = 600 represents the rate of flow of money in dollars per year. Assume a 10-year period at 4% compounded continuously. Find (A) the present value, and (B) the accumulated amount of money flow at t = 10. (A) The present value is $ (Do not round until the final answer. Then round to the nearest cent as needed.)Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O Negative