What is the equivalent uniform annual payment for the following cash flows if the interest rate is 10%? Populate the following table and compute the equivalent uniform annual payment. Show all work and provide an explanation. Do not use Excel. [Hint: This problem is a mix of annuity, gradient, and a single future cash flows.] ΕΟΥ Cash Flows Annuity Gradient Future 1 $2,000 2 $3,000 3 $4,000 4 $5,000 5 $6,000 6 $7,000 7 $8,000 8 $9,000 9 $10,000 10 $14,000

What is the equivalent uniform annual payment for the following cash flows if the interest rate is 10%? Populate the following table and compute the equivalent uniform annual payment. Show all work and provide an explanation. Do not use Excel. [Hint: This problem is a mix of annuity, gradient, and a single future cash flows.] ΕΟΥ Cash Flows Annuity Gradient Future 1 $2,000 2 $3,000 3 $4,000 4 $5,000 5 $6,000 6 $7,000 7 $8,000 8 $9,000 9 $10,000 10 $14,000

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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What is the equivalent uniform annual payment for the following investment if the interest rate is 10%? Populate the following table and compute the uniform annual payment. Show all work and provide a comment. [Hint: This problem is a mix of annuity, gradient, and a single future cash payment] ΕΟΥ Cash Flows 1 $4,000 2 $4,500 3 $5,000 4 $5,500 5 $6,000 60 $6,500 7 $7,000 00 8 $7,500 9 $8,000 10 $15,500 Annuity Gradient Future
Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the future value of an annuity due? PMT x {[(1 + r)ª − 1]/r} x (1 + r) O FV/(1 + r)¹ PMT x {[(1 + r)" - 1]/r} O PMT x ({1 - [1/(1 + r)"]}/r) x (1 + r)
500 Calculate the value of X to suit this cash flow diagram with i = 9%. X is an end of period payment. Provide modified cash flow diagram(s) necessary for your solution, and show all work. 400 300 200 100 2.
Economics please solve it with details and write explantion for each step 5-14 The cash-flow diagram below has an internal rate of retum of 25%. What is the value of Y if perpetual service is assumed? (53.3) $500.000 EOY SS00.000 00o00 IS
Q)You are given the future value of an annuity, A, the monthly payment, R, and the annual interest rate, r. Find the number of monthly payments, n. Round your answer to the nearest whole number if necessary.A = $4000; R = $70; r = 7% Solve it correctly not use excel
Consider end-of-year cash flows for $8000, $15000, $2200O, $29000, and $36000 for years 1 to 5. If the series of cash flows is to be split into a uniform series and a uniform gradient, what is the uniform [ Select ] annuity amount A? If the series of cash flows is to be split into a uniform series and a [ Select ] uniform gradient, what is the uniform gradient amount G? What is the uniform annual [ Select ] equivalent if the interest rate is 12% per year? What is the future equivalent if the [ Select ] interest rate is 12% per year? What is the present equivalent if the [ Select ] interest rate is 12% per year?
1. Basic concepts Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Discounting Time value of money Amortized loan Ordinary annuity Annual percentage rate Annuity due Perpetuity Future value Amortization schedule Opportunity cost of funds Answer — Description A. A series of equal (constant) cash flows (receipts or payments) that are expected to continue forever. The name given to the amount to which a cash flow, or a series of cash flows, will grow over a given period of time when compounded at a given rate of interest. An interest rate that reflects the return…
Please solve using time value of money table. Thank You! t 2 4 5 $ 100 -1000 400 300 -100 i 2% 2% 5% 5% 4% 4% a. Draw the corresponding Cash Flow Diagram. Note that the interest rate applies between the period i is assigned to and the next one. b. What is the present worth of this cash flow (i.e., at t = 0)
Use a calculator to evaluate the present value of an annuity formula [1-(1+) -nt P = m for the values of the variables m, r, andt (respectively). Assume n = 12. (Round your answer to the nearest cent.) $1,050; 5%; 3 yr %24
Single Cash Flow Present Value Inputs Single Cash Flow $1,000 Discount Rate/Period 6% Number of Periods 5 Present Value using a Time Line Period 1 2 3 4 Cash Flows Present Value of Each Cash Flow Present Value Present Value using the Formula Present Value Present Value using the PV Function Present Value
Solve it correctly not use excel. Q)Find the present value amount that is equivalent to a uniform gradient series in which the first year's payment is $500, the second year's payment is $600, the third year's payment is $700, and so on, and there is a total of 13payments. The annual interest rate is 9%."
You are given the following cash flows. What is the present value (t = 0) if the discount rate is 12 percent? 0 1 2 3 4 5 6 (Periods) 0 2,000 2,000 2,000 0 -2,000 -2,000 (cash flows) Select one: a. $4,289 b. $2,804 c. $2,656 d. $4,804 e. $5,302

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