Number of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial amount $170,100 Annual cash flow $20,473 EXT Rate of return 5% The number of investment years, n, isyears. (Round to two decimal places.)

Number of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial amount $170,100 Annual cash flow $20,473 EXT Rate of return 5% The number of investment years, n, isyears. (Round to two decimal places.)

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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Determine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, varies as indicated. 55,000 $5.000 $2.500 $2,500 4-12% 48% 10% 10% Years Click the icon to view the interest and annuity table for discrete compounding when /8% per year. Click the icon to view the interest and annuity table for discrote compounding when /10% per year. The present equivalent value is $ (Round to the noarest cent.)
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $30,000 in a fund paying 5% per year, with monthly payments for 5 years, if the fund contains $10,000 at the start PMT = $ please round it to the nearest cent
Find the periodic payments PMT necessary to accomulate the given account in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $20,000 in a fund paying 2% per year, with quarterly payments for 20 years. PMT = $
• model investment and annuity problems;• solve exercises applying concepts of the sum of sets of terms of a sequence, and• solve problems related to annuities using sequences or series. An annuity pays $15,000 per year. Due to inflation, each year a dollar is worth what $0.970 was worth the year before. Payment is made at the beginning of each year. What is the present value of the annuity if it is paid over three years (starting immediately)?
Consider each of the following deposit cash flow series. What will the final balance be (e.g., future equivalent value) after the final deposit? Assume the account earns 10% interest compounded annually. a) b) Year Cash Flow/$ Year Cash Flow/$ 0 25 0 35 1 50 1 60 2 75 2 75 3 100 3 110 4 125 4 135 5 150 5 160
Find the amount of a perodic payment necessary fur the deposit of a sinking fund. Amount needed a = 60000 Frequency n = semi-annual Rate r = 2% Time t = 10 years
Given the following information, calculate the rate of return. price = $501.88time to maturity = 10 yearsannual payment = $100type = ordinary annuity
Engineering Economics (Annuity) An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an annuity paying an amount at the beginning of each month for 15 years. Money is worth 10% compounded annually. Determine the Future value of the payment and the amount being paid at the beginning of each month for 15 years? note: include cash flow diagram and complete/readable solution for this problem, this is 100% upvote guaranteed
Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $288,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $36,000. The company's minimum desired rate of return for net present value analysis is 12%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place. 8 X %
A real estate investment has the following expected cash flows: Year Cash Flows 1 $14,000 2 19,000 3 19,000 4 25,000 The discount rate is 3 percent. What is the investment’s present value? Round your answer to 2 decimal places
A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to $0. The first payment of $1 is made today. If the fund is used to purchase a ten-year level annuity with the first payment at twenty years from today, what is the amount of the level payment? (Assume an annual effective rate of interest of 4%.) Possible Answers A B D <$16 c≥ $17 but < $18 E ≥ $16 but < $17 ≥ $18 but < $19 ≥ $19
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT [See Quick Example 2.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $40,000 in a fund paying 3% per year, with monthly payments for 5 years PMT = $

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