Assume r=0.1. What is the present value of the following stream of cash flow? Year 1 1000 Year 2 1000 Year 0 Year 3 Year 4 Year ... 1000 1000 1000 1000 ....... 11000 100000 12000 10000

Determine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, İk varies as indicated. Q P=? $2,500 i₁ = 6% 1 $5,000 The present equivalent value is $ 1₂ = 15% 2 13 = 12% 14 = 6% 3 Years $2,500 (Round to the nearest cent.) 4 $5,000 15 = 6% 16 = 15% 5 Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 12% per year. 6

Rich wants to have $25 000 in 5 years for a down payment on a house. How much should he invest today at 6.25% per annum, compounded quarterly? i = n = A = P = ? Present Value, P = A(1 + i)^ Notice the negative exponent Therefore, he should invest $ ..today.

Question 10 please

A6

Calculate the Future worth, at year 7, of the following cash flow. Consider 6% annual interest rate, compounded semiannually. 0 2000 1 3000 Interest Tables 2 1000 3 1500 4 5 6 7 $2,000 2500 3000 ia = (1 + i)m − 1 where İa = effective annual interest rate i = rate for one compounding period m = number times interest is compounded per year i = (1 + r / m)m – 1 where i = effective interest rate for any time period r = nominal rate for same time period as i m = no. times interest is comp'd in period specified for i

A geometric gradient that increases at f= 5% per year for 15 years is shown in the accompanying diagram. The annual interest rate is 10%. What is the present equivalent value of this gradient? AClick the icon to view the diagram for geometric gradient values. Click the icon to view the interest and annuity table for discrete compounding when i= 5 % per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. 4... The present equivalent value of the gradient is $ (Round to the nearest dollar.)

The two cash flows A and B shown below diagram are said to be equivalent at 8% interest compounded annually. Find the unknown value of C that satisfies the equivalence. 1000 1500 2000 2500 3000 0 1 2 3 4 0 1 2 3 4 A のこ 500 B

4. For the cash flows shown, find the value of x that makes the equivalent annual worth in years 1 through 7 equal to $300 per year. Use an interest rate of 10% per year. Year 0 1 2 3 Cash Flow, $ x 300 300 300 Year 4 6 7 Cash Flow, $ 300 300 300 X

2. A warehouse is initially rented for Php. 100, 000.00 a year. If the 10-year lease contract indicates that the rent increases by Php. 10,000.00 each year, determine the present worth of the lease. Money is worth 8% compounded monthly.