Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- what is present value of perpetuity if annual coupon is $1,000 and discount rate is 10%arrow_forwardFind the present value PV of the given future value. (Round your answer to the nearest cent.) Future value $8,300 at 9 1/2% simple interest for three yearsarrow_forwardWHAT WILL BE THE FUTURE WORTH OF MONEY AFTER 6 MONTHS, IF THE SUM OF P100,000 IS INVESTED TODAY AT SIMPLE INTEREST RATE OF 5% PER YEAR? O a. P102,050.00 O b. P120,500.00 O c. P102,510.00 O d. P102,500.00arrow_forward
- At present, you invest 10,000 pesos in a 15% security for 5 years. During the time, the average annual inflation is 6%. How much, in terms of present pesos, will be the account of maturity? Using this formula F=P(1+f)^n.arrow_forwardWhat is the future value of $2,425 per year for 13 years at an interest rate of 6.57%? MUST USE EXCEL FORMULA, NOT ALGEBRAICALLY!!arrow_forwardDetermine the present value, P, you must invest to have the future value, A, at simple interest rate r after time t. Round answer to the nearest dollar. A=$5,000, r=8.2%, t=5 yearsarrow_forward
- Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $14,000, r = 7.5%, t = 8 yearsarrow_forwardInvest $28,000; Compounded quarterly; 30 years; Annual Interest Rate of 3.5%; Find the Future Value. Variable Value N = I% = PV = PMT= FV = P/Y = C/Y = What is the Missing Variable Unit? Write a Context Sentence:arrow_forwardFind the present value PV of the given future value. (Round your answer to the nearest cent.) Future value $8,100 at 9 1/2 % simple interest for six years. PV = $ Find the present value PV of the given future value. (Round your answer to the nearest cent.) Future value $1,119 at 3 5/8 % simple interest for 518 days. PV= $ PV = $ % simple interest for 518 daysarrow_forward
- Compute the PV of a perpetuity with monthly payments of $1,000, given an annual discount rate of 4% and a constant annual growth rate in the payment stream of 2% ?arrow_forwardFind the present value PV of the given future value. (Round your answer to the nearest cent.) future valye $5,250 at 4.875 simple interest for 670 days PV = $arrow_forwardNow it's time to practice what you've learned. Consider a future value of $2,000, 9 years in the future. Assume that the nominal interest rate is 24.00%. Assume that there is semiannual compounding. Entering PMT=0 and a FV=$2,000 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately $ with semiannual compounding. Assume that there is quarterly compounding. Entering PMT=0 and a FV=$2,000 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately $ with quarterly compounding. Suppose now that the cash flow of $2,000 occurs only 1 year in the future. Assume that there is monthly compounding. Entering PMT=0 and a FV $2,000 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately $ with monthly compounding.arrow_forward
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