a) The flows of the cash are given below: End of the year Cash flows (Rs) 1 -8000 -7000 3 -6000 4 -5000 Calculate the present equivalent and future equivalent at i= 15% per year.
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- 2. Attach a complete solution. Draw the cash flow diagram. Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded quarterly. How much would be accumulated in his fund by the end of the 4th year? The first payment occurs at time zero (now).Calculate the total present worth of the cash flow below using an interest rate of 2.8% and when Q is: i. $1950 ii. $1250 iii. $580 iv. $0 0 1 2 3 4 5 6 Which case from (i), (ii), (iii), and (iv) produces the highest total present worth? is it the best case to invest in? Why? $14700 + $335 $335 → $750 00sS → $950Determine the present worth of the following cash flows based on an interest rate of 7.43% per year, compounded annually. Round off to two decimal places. End of Year 0 = Php 5585 End of Year 1 = Php 5561 End of Year 2 = Php 5320 End of Year 3 = Php 5858 End of Year 4 = Php 5436 End of Year 5 = Php 5442
- Solve Problem 20.25 using Excel.4. P60,000.00 is placed in an account at 4% compounded annually for 2 years. It is then withdrawn at the end of the two years and placed in another bank at the rate of 5% compounded semi-annually for 4 years. What is the balance in the second account after the 4 years?The principal sum P is invested at nominal interest rate r, compounded m times a year, for n year. The accumulated amount at the end of this period will be?
- A debt of P100 701.30 is to be paid by 10-end of the year payments. The first payment begins at the end of the 10th year. Find the yearly payment if rate of interest is 8% compounded yearly.For the cashflow diagram below, what is the equivalent annual worth? Consider i=8%. 0 1 2 3 4 5 6 Years ४. 300 400 500 600 700 800Your future company has purchased a machine and has entered into a contract that requires the company to pay $2000 each year for the upgrade of machine components at the end of years 6, 7, and 8. In anticipation of the upgrade cost, your company has decided to deposit equal amounts ( X ) at the end of each year for five years in a row in an account that pays i = 6% . The first deposit is made at the end of the first year. What is the value of X?
- Given: Amount A, = Ph 50,000 %3D Number of conversion periods n =98 The present value P is Ph 50,000 P= (1+0.04) 96 P= Ph 1,158.16 50.000 if invested at 4% interest compounded monthly. II. Exercises A. Exercise Direction: Find the present value of the following: Show your solution and write your answer in a sheet of paper. 1. Ph 40,000 due in two years at 3% compounded monthly 2. Ph 60,000 due in 3 years at 4% compounded monthly 3. Ph 75,000 due in 5 years at 5% compounded montnly 8. Compound I = 4% = 0.042.) If P5,000 shall accumulate for 10 years at 8% compounded quarterly. Find the compounded interest at the end of 10 years. 3.) How many whole years will it take a money to be four times its value at the rate of 7% compounded semiannually? 4.) If a money needs to triple itself for 5 years. What interest rate compounded bimonthly does it need to be invested to?Determine the present worth of the following cash flows based on an interest rate of 6.18% per year, compunded annually. End of Year 0 = Php 5724 End of Year 1 = Php 5972 End of Year 2 = Php 5203 End of Year 3 = Php 5767 End of Year 4 = Php 5492 End of Year 5 = Php 5787