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 the
present value of a savings account that is expected to pay $1,250 ofcash inflow at the end of year 1, $0 cash inflow at the end of year 2 and $1,050 cash inflow at the end of 3rd year given therate of return 10% in the first and second year and 12% in the third year? Please Show the work
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- Future Value ComputationAt the beginning of the year you deposit $3,000 in a savings account. How much will accumulate in 3 years if you earn 8% compounded annually?Use Excel or a financial calculator for computation. Round your answer to nearest dollar.arrow_forwardPlease advise on these time value of money practice problems. How would you solve these using a financial calculator? What values would you enter for N, I/YR, PV, PMT, and FV ? a) Calculate the PV when you plan to receive $5,000 in 5 years with a 10% discount rate. b) Calculate the FV of a $10,000 deposit today for 10 years @ 5%. c) What is the PV of receiving $2,500 for each of the next 5 years with a 10% discount rate?arrow_forwardHow much invested now at 7% would be just sufficient to provide three payments, with the firstpayment in the amount of $10,000 occurring in year 2, then $7,500 occurring in year 4, and finally $4,000 in year eight? Draw the cash flowarrow_forward
- 不 a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate Time Financial Goal $? at the end of each year 3% compounded annually 15 years $130,000 Click the icon to view some finance formulas. a. The periodic deposit is $ (Do not round until the final answer. Then round up to the nearest dollar as needed.) this View an example Get more help 4 Clear all Checarrow_forwardProvide step by step manula solution, formula, and diagram. An investor have a projected surplus income of P1000 per year which he plans to place in a bank which offers an interest of 18% per annum for time deposit over 5 years. Compute how much shall the investor collect at the end of 13 yearsarrow_forwardYou have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period? (Click here to see present value and future value tables) Amounts ofInvestment Rate Times Value at the Endof the Period $9,000 20% 16 years $fill in the blank 1 $13,000 15% 11 years $fill in the blank 2 $16,000 12% 6 years $fill in the blank 3 $35,000 10% 4 years $fill in the blank 4arrow_forward
- What amount of cash would result at the end of one year, if $15,000 is invested today and the rate of return is 8%? A) $16,200 B) $13,889 C) $15,000 D) $1,200arrow_forwardFind the present value of a cash flow stream which pays $5000 at the end of every year for 15 years at an interest rate of 9%?arrow_forwardHow much interest is payable each year on a loan of $2,000 if the interest rate is 10% per year when half of the loan principal will be repaid as a lump sum at the end of four years and the other hawk be repaid in one lump-sum amount at the end of eight years? How much interest will be paid over the eight-year period? Draw the Cash Flow Diagram.arrow_forward
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