Foundation of NPV Assignment-1
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California State University, Long Beach *
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Course
650
Subject
Finance
Date
May 1, 2024
Type
xlsx
Pages
18
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a) Find the Present Value of $5,000 due in 3-years time, deposited to a bank
Time
0
1
2
3
4
5
FV=
($5,000)
n=
2
r=
5%
PV=
$3,839.48
Time 0
1
2
3
4
5
FV=
n=
12
r=
6.00%
PV=
$ -2,000 m=
6
APR=
6.00%
EAR=
6.168%
c) An investor invests $30,000 and accumulates $35,000 in the account after
Time 0
1
2
3
4
5
FV=
n=
10
r=
1.553%
PV=
-$30,000
m=
10
Foundations Assignment
Please calculate the PV, FV, number of periods and interest rate for a single
calculations.
b)An investor invests $2,000 for 6 months from a nominal annual rate of 6%
the account after six months? Calculate the annual percentage rate (APR) an
APR=
18.641%
EAR=
20.32%
d) How long it will take for $42,000 to grow to $55,270 at a semiannual rate
Time 0
1
2
3
4
5
FV=
n=
7
r=
4%
PV=
-$42,000
m=
4%
APR=
8.00%
EAR=
8.16%
k from a nominal annual rate of 9% compounded semiannually. 6
6
$2,059.13 r 10 months. Calculate the monthly interest rate, APR and EAR?
6
7
8
9
10
35,000
e amount in the first work sheet. Remember to use related excels functions for your %, compounded monthly. How much will he accumulate in nd Effective Annual Rate (EAR)?
e 0f 4% ? 6
7
….
55260
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Related Questions
What is the present value of a stream of 5 end-of-year annual cash receipts of $3,200 given a discount rate of 13%? (Round your final
answers to 2 decimal places.)
a. Use the appropriate table (Appendix C: Table 1, Table 2) to answer the above question.
b. Use the appropriate built-in function in Excel to answer the above question.
a.
b.
PV of annuity
PV of annuity
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When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can
obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to
including a rate of 16%. If the rate is 7%, how much interest is earned?
OA. $6,020
OB. $602
O C. $586
OD. $622
I
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Consider a loan of $8,000 charging interest at j12-6% with monthly payments of
$321.50 Calculate the missing amounts in the amortization table. Place the value for
A in the first answer box, B in the second and C in the third.
PMT Interest Principall Balance
8,000.00
1321.50 40.00 281.50 7,718.50
2 321.50
A
C
arrow_forward
For each of the following annuities, calculate the annual cash flow:
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Cash Flow
Present Value
31,600
28,450
147,500
216,300
$
$
$
$
Years
6
8
12
16
Interest Rate
9 %
7
12
11
arrow_forward
Choose the best answer
Compute the future value in year 5 of a $2,000 deposit in year 1 and another $2,500 deposit at the end of year 3 using a 6% interest rate.
a. $5,333.95
b. $5,653.99
c. $5,850.00
d. $6,022.02
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The equation, A = P(1 + 0.037t), represents the amount of money earned on a savings account with 3.7% annual simple interest. If the amount after 5 years is equal to $1,422, what is the amount of the principal investment?
$1,200
$1,422
$274.25
$294.86
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For what value of X would the cash flow have a present value of -$4,900 assuming the money was invested in an account earning 4%
interest compounded annually?
$2,200
O
tA
$
i = 4%
1
$2,500
2
Click here to access the TVM Factor Table calculator.
$3,500
arrow_forward
A company would like to have $400,000 in 6 years. How much should be invested semiannually into an
account paying 3.6% compounded semiannually?
7. Identify the type of problem.
a. Present Value with compound interest
b. Future Value of an Annuity
c. Present Value of an Annuity
d. Amortization
e. Sinking Fund
8. Answer the question in the problem.
a. $30,681.38
b. $29,754.02.
c. $34,245.54
d. $30,160.79
c. $28,541.46
arrow_forward
For each of the following annuities, calculate the present value. (Do not round
intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Present Value Annuity Payment
$
2,000
$
1,280
$
11,580
30,150
69
$
Years
7
17
25
Interest Rate
9 %
8
10
12
arrow_forward
rch
LG2 PS-4) Future values For each of the cases shown in the following table, calculate the
future value of the single cash flow deposited today at the end of the deposit perk
if the interest is compounded annually at the rate specified.
AAVA**
C
D
Single cash flow
$ 200
4,500
10,000
25,000
37,000
40,000
Interest rate
O E
8
9
10
11
Deposit period (years)
20
7
10
в гро
arrow_forward
For each of the following annuities, calculate the present value.
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Present Value Annuity Payment
$
2,750
$
1,505
13,455
33,900
LA
$
$
SA
Years
7
9
16
30
Interest Rate
6 %
5
7
9
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Suppose you receive cashflows of $10 at year 1, $12 at year 2, $14 at year 3 and $16 at year 4. What would be the value of the cashflows at year 2 at a 5% annual interest rate? MUST SHOW FULL WORK (NO EXCELL)
a.
38.3458
b.
50.3458
c.
42.0000
d.
12.0000
e.
49.3621
arrow_forward
Given the following cash flow, what would be the value of P if the inflows and outflows balance each other at an interest rate of 6%?
Year
0
Inflows
$5,000
Outflows
1
($4,500)
23456
4P
-12P
8P
16P
($7,500)
7
8
24P
OO
$173
$238
$268
$291
arrow_forward
For each of the following annuities, calculate the present value.
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Present Value Annuity Payment
$
$
$
$
2,600
1,460
13,080
33,150
Years
7
9
21
27
Interest Rate
9%
8
10
12
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DIRECTION: ENCIRCLE THE BEST ANSWER.
4.) This refers to the interest rate per conversion period
A Compound interest
C Rate of interest
B Periodic rate
D. Simple interest
5) Thuis nefers to the amount paid or eames for the use of money
A Conversion period
C. Principal
B. Interest
D Rate
6) 30 months is equivalent to
A 25 years
B 2.75 years
C 3 years
D 3.25 years
1) How much is the simple interest on this financial transaction. P = .000 00. - * 6°..
and / 2 years
AP120.00
B P600.00
CP1.300 00
D P6.000.00
6) What is the total number of conversion periods when a certain amount is borrowed are 10°. coupomded mouthly for 5 years?
A.12
B 50
C 24
D. 60
How unch was the interest if Sophia borrowed P45.000 90 and paid a total of
PS5.500.00 ar the end of the tem
A PI0.500 00
CP11.500.00
B P45,000.00
D. P100.500.00
10.) What is the interest rate per conversion period if 125.900 00 was tvested at 3.4.
compounded oruually for 4 years and 6 months
0033
C 0.110
B 0.330
D. 0 160
11. Jolu borowed…
arrow_forward
please solve all part i need answers all
Q3): Fill in the entire chart for the below annuities by filling in all the blanks.
#
Payment and frequency
(PMT)
Time in years
(n)
Interest rate and compound frequency (I/Y)
Present Value (PV)
Future Value
(FV)
a.
$5,682.04 per quarter (end)
5 years
5% compounded quarterly
______________
Not Applicable
b.
$241.63 per month (end)
69 payments
6 ¼ % compounded monthly
Not Applicable
_______________
c.
$____________ per quarter
7 years and 3 months
3 % compounded semi-annually
$7,795.89
Not Applicable
d.
$445.30 per month
__________years
7.45 % compounded quarterly
Not Applicable
$24,788.40
e.
$2,000 beginningof every six months
12 ½ years
_______compounded quarterly
$37,708.30
Not Applicable
f.
$2,789.58 beginning of every 3 months
60 months
2.75% compounded quarterly
Not Applicable…
arrow_forward
3. Present Value
For each of the cases shown in the following table, calculate
the present value of the cash flow, discounting at the rate
given and assuming that the cash flow is received at the end
of the period noted.
Part Single CF Interest Rate Deposit Period (Years)
A
$800
6
B
$1200
7
C $12,000
8
D
$35,000
10
3%
6%
8%
10%
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What is the PRESENT VALUE of a ₱20,000 single payment with annual rate of 12% to be compounded annually that will be received after 5 years?
A. ₱11,348.54
B. ₱22,400.00
C. ₱32,000.00
D. ₱35,246.83
Which of the following is an operating cash inflow activities?
A. Receipt of loan from bank
B. Proceed from sale of fixed assets
C. Collection of accounts receivables
D. Issued shares of stocks
Which part of financial planning is meeting with the heads of other department and get information from them pertaining to the tactics that might be able to develop?
A. develop a plan
B. gather the relevant data
C. establish the objective
D. implement the plan
Statement 1: Long-term financial planning focuses on big picture, such as capital structure and capital budgeting. Statement 2: Short-term financial planning focuses on ensuring that business has enough cash to pay all its liabilities.…
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For each of the following annuities, calculate the future value.
Note: Do not round intermediate calculations and round your answers to 2
decimal places, e.g., 32.16.
Future Value
Annual Payment
$
$
$
$
1,220
4,340
2,940
7,530
Years
10
50
9
35
Interest Rate
5%
6
3
7
arrow_forward
1) Find the PW, AW and FW of the following cashflow if the interest rate compound
semiannually.
P-7
i-10%
--14%-
Year
$100 $100 S100 $100 $100
S160 $160 SIG0
arrow_forward
A certain sum of money P draws interest compounded continuously. If at a certain time there are Po dollars in the account, determine
the time when the financial attains the value of 2Po dollars if the annual interest rate at 4%.
Select the correct response:
O 0.289 hr
O 0.212 hr
0.562 hr
none of the choices
0.321 hr
arrow_forward
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Related Questions
- What is the present value of a stream of 5 end-of-year annual cash receipts of $3,200 given a discount rate of 13%? (Round your final answers to 2 decimal places.) a. Use the appropriate table (Appendix C: Table 1, Table 2) to answer the above question. b. Use the appropriate built-in function in Excel to answer the above question. a. b. PV of annuity PV of annuityarrow_forwardWhen $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to including a rate of 16%. If the rate is 7%, how much interest is earned? OA. $6,020 OB. $602 O C. $586 OD. $622 Iarrow_forwardConsider a loan of $8,000 charging interest at j12-6% with monthly payments of $321.50 Calculate the missing amounts in the amortization table. Place the value for A in the first answer box, B in the second and C in the third. PMT Interest Principall Balance 8,000.00 1321.50 40.00 281.50 7,718.50 2 321.50 A Carrow_forward
- For each of the following annuities, calculate the annual cash flow: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Cash Flow Present Value 31,600 28,450 147,500 216,300 $ $ $ $ Years 6 8 12 16 Interest Rate 9 % 7 12 11arrow_forwardChoose the best answer Compute the future value in year 5 of a $2,000 deposit in year 1 and another $2,500 deposit at the end of year 3 using a 6% interest rate. a. $5,333.95 b. $5,653.99 c. $5,850.00 d. $6,022.02arrow_forwardThe equation, A = P(1 + 0.037t), represents the amount of money earned on a savings account with 3.7% annual simple interest. If the amount after 5 years is equal to $1,422, what is the amount of the principal investment? $1,200 $1,422 $274.25 $294.86arrow_forward
- For what value of X would the cash flow have a present value of -$4,900 assuming the money was invested in an account earning 4% interest compounded annually? $2,200 O tA $ i = 4% 1 $2,500 2 Click here to access the TVM Factor Table calculator. $3,500arrow_forwardA company would like to have $400,000 in 6 years. How much should be invested semiannually into an account paying 3.6% compounded semiannually? 7. Identify the type of problem. a. Present Value with compound interest b. Future Value of an Annuity c. Present Value of an Annuity d. Amortization e. Sinking Fund 8. Answer the question in the problem. a. $30,681.38 b. $29,754.02. c. $34,245.54 d. $30,160.79 c. $28,541.46arrow_forwardFor each of the following annuities, calculate the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Annuity Payment $ 2,000 $ 1,280 $ 11,580 30,150 69 $ Years 7 17 25 Interest Rate 9 % 8 10 12arrow_forward
- rch LG2 PS-4) Future values For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today at the end of the deposit perk if the interest is compounded annually at the rate specified. AAVA** C D Single cash flow $ 200 4,500 10,000 25,000 37,000 40,000 Interest rate O E 8 9 10 11 Deposit period (years) 20 7 10 в гроarrow_forwardFor each of the following annuities, calculate the present value. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value Annuity Payment $ 2,750 $ 1,505 13,455 33,900 LA $ $ SA Years 7 9 16 30 Interest Rate 6 % 5 7 9arrow_forwardSuppose you receive cashflows of $10 at year 1, $12 at year 2, $14 at year 3 and $16 at year 4. What would be the value of the cashflows at year 2 at a 5% annual interest rate? MUST SHOW FULL WORK (NO EXCELL) a. 38.3458 b. 50.3458 c. 42.0000 d. 12.0000 e. 49.3621arrow_forward
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SEE MORE QUESTIONS
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Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning