8-30 Construct a choice table for interest rates from Of100%. Similar alternatives will repeat indefinitely.AAlternativesABCDInitial cost$2500 $4800$4200$3600Annual benefitSalvage value850 700 850 1300250017501250 3000568Life, in years

Answers: AlternativesABCDInitial Cost $2500$4800$4200 $3600Annual Benefit $850$700$850$1300 Salvage…

Answered: 8-30 Construct a choice table for…

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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Solve the following problem using the present worth analysis for an interest rate of 8%. Alt. A Alt. B Alt. B Initial cost $1,700 $2,100$3,750 Benefit/year 1,000 |1,000 1,000 Life in years|2 3 6
8. How much would you invest today in order to receive $30,000 in each of the following independent scenarios: 10 years at 9% 8 years at 12% 14 years at 15% 24 years at 10% complete the following table: Present Value (PV) Rate Time (Years) Future Value (FV) A ? 9% 10 $30,000.00 B ? 12% 8 $30,000.00 C ? 15% 14 $30,000.00 D ? 10% 24 $30,000.00 PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the present value of $1 table in the verify that your answers above are correct: Future Value (FV) Rate Time (Years) FV Factor (from Table) Present Value (PV) A $30,000.00 9% 10 ? ? B $30,000.00 12% 8 ? ? C $30,000.00 15% 14 ? ? D $30,000.00 10% 24 ? ? PLEASE NOTE: All PV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).
What's the future value of $10,000 after 10 years if the appropriate interest rate is 10%, compounded monthly? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $25,937.42 $27,070.41 O $10,000
3 Use the formula for simple interest, I = Prt, to find the indicated quantity. Assume a 360 day year. |= $120; P = $2000; t= 270 days; r= ? % (Simplify your answer.)
Determine the present value P that must be invested to have the future value A at simple interest rate rather time A = $4000.00, r= 11.0%, t = 6 months
Find the amount that should be set aside today to yield the desired future amount. Future amount Interest Compounding period semiannually Investment needed rate time $10,000 4% 2 years Click the icon to view the present value of $1.00 table. The present value is $ (Round to the nearest cent as needed.)
Find the PV and FV of an investment that makes the following end-of-year payments. The interest rate is 8%. Year Payment 1 100 2 200 3 400 Rate = 8% To find the PV, use the NPV function: PV = Year Payment x (1 + I )^(N-t) = FV1 100 1.17 116.64 2 200 1.08 216.00 3 400 1.00 400.00 Sum = ?PV = ?FV of PV = ?
Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of that future sum. Assuming a positive interest rate (required rate of return), which of the following is a possible number for the present value of the $2500? Even without knowing the interest rate, it is possible to answer this question. O A. $2742.53 B. $2632.45 O C. $1967.25 OD. $2572.50 O E. None of the above is a possible number.
Site ana sayfası Takvim Nişanlar Tüm dersler Course dashboard The formula for finding the present value of an amount M that will be received one year from now, when the interest rate is R, 1s Lutfen birnni seçin. O a M/(1+R) ObMx(1+ R/100) O cM/R. OdMx(1+ R) SONRAKİ SAYFA YFA deki ders materyalleri Creative Commons açık lisansları ile lisanslanmıştır.
Ineed to answerthese questions can you help me out, Questions4,5 4- What is the current value of the following payment sets? A set with a base payment of $ 2000 in the first year, with a 5% annual increase to 10 years and an interest rate of 12% 5- How many years would it take for an investor to increase an initial investment of $3000 to $6939 if i) that investment were compounded annual at 15% per annum? (answer=6 years) ii) an investorto increase an initial investment of $1000 to $7400 if that investmentwere compounded annual at 10% per annum? an investorto increase an initial investment of $5000 to $302100 if i) that investment were compounded annual at 6% per annum? an investorto increase an initial investment of $200 to $2824 if iv) that investment were compounded annual at 12.2% per annum?
j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 8%. Year 1 $100, Year 2 $200, Year 3 $400 Year Payment 1 100 2 200 3 400 Rate 8% To find the PV, use the NPV function: Pv= $581.59 Year Payment x (1+ I)^(N- t) = FV 1 100 2 200 3 400
If the current market rate of interest is 10%, then the future value of $500 today in 3 years is closest to: Group of answer choices $666 $500 $565 $600

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8-30 Construct a choice table for interest rates from Of 100%. Similar alternatives will repeat indefinitely. A Alternatives A B C D Initial cost $2500 $4800 $4200 $3600 Annual benefit Salvage value 850 700 850 1300 2500 1750 1250 3000 5 6 8 Life, in years