What is the present value of $3,000 to be received 2 years from now, if the discount rate is: (a) 6%, (b) 10%, and (c) 13% ? 1. Use the appropriate table (Appendix C: Table 1) to answer the above questions. 2. Use the formula shown at the bottom of Appendix C. Table 1, to answer the above questions. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the formula shown at the bottom of Appendix C, Table 1, to answer the above questions, (Round "PV Factor to 5 decimal places and "PV values" to 2 decimal places.) Future after-tax cash flow Cash flow received at the end of year (a) (b) (c) Rate 6% Answer is complete but not entirely correct. 10% 13% PV Factor 089000$ 082645$ 0.78315 S PV < Required 1 7,553 3 18,406 2,669.99 2,479.34 2,349 44

What is the present value of $3,000 to be received 2 years from now, if the discount rate is: (a) 6%, (b) 10%, and (c) 13% ? 1. Use the appropriate table (Appendix C: Table 1) to answer the above questions. 2. Use the formula shown at the bottom of Appendix C. Table 1, to answer the above questions. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the formula shown at the bottom of Appendix C, Table 1, to answer the above questions, (Round "PV Factor to 5 decimal places and "PV values" to 2 decimal places.) Future after-tax cash flow Cash flow received at the end of year (a) (b) (c) Rate 6% Answer is complete but not entirely correct. 10% 13% PV Factor 089000$ 082645$ 0.78315 S PV < Required 1 7,553 3 18,406 2,669.99 2,479.34 2,349 44

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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For the following economic calculations, write the factors (multipliers) that should be used,in (i) using the parameter values, and in (ii) calculate the result by showing your computations. Write the results you find in the spaces left. (Use factors for your calculations.)EXAMPLE: If you deposit $ 100 to a bank account that earns 8% annual interest, how much money will you have in this account after five years?(i)(F/P, 8%, 5) (ii)146.93100 * (F/P, 8%, 5) = 100 * 1.4693 = 146.93 TLa. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8% over six years from a bank. What is the amount of your current credit?(i) (ii)b. A bank is required to deposit money for four years with an interest rate 10%. The money deposited at the end of the first year is 6000 TL and the amount of money deposited in the next three years will be reduced by 500 TL every year. How much money will be in the bank at the end of the fourth year?(i) (ii)
Two alternative courses of action have the following schedules of disbursements. If the MARR is 6% which alternative should be selected? Use present worth analysis. Show your calculations in your working document. Also note that in periods 4 and 5, the values for option B should be - 400 and - 500 respectively. Year 0 1 2345 2 3 A B -$1,300 0 0 0 0 0 $1,300 - $100 -200 -300 400 500 $1,500
Percentages need to be entered in decimal format, for instance 3% would be entered as .03 in cell B12.) Set up an amortization schedule for a $60,000 loan to be repaid in equal installments at the end of each of the next 20 years at an interest rate of 20%. What is the annual payment? After you input the data for each scenario, click on the Graph tab (second tab on the worksheet) and look at the Principal and Interest portions of the payments throughout the years. What do you notice about the amount of Principal and Interest over the years (which amount is higher in the early years, and which amount is higher in the later years) of the loan? What do you notice about the difference in Principal and Interest in the 10% scenarios compared to 20% scenarios?
Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What is the present value of $29,000 due 11 periods from now, discounted at 6%? (Round answer to 2 decimal places, e.g. 25.25.) Present value $ (b) What is the present value of $29,000 to be received at the end of each of 11 periods, discounted at 5%? (Round answer to 2 decimal places, e.g. 25.25.) Present value 16167.43 $ 224056.60
2. If you receive $249 each quarter for 4 quarters and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)
For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) [From instructor: After watching the hint video, please also scroll down to read the alternative methods as well. Thank you!] Present Value $ 2,000 8,252 71,355 178,796 Years 11 7 14 8 Interest Rate 13 % 9% 12 % 6 % Future Value
Suppose you want to have $600,000 for retirement in 25 years. Your account earns 4% interest. How muc would you need to deposit in the account each month? Submit Question /course/showcalendar.php?cid=179278 Search
An annuity pays $200 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet. The current value of this stream of CFs is $1,544. What is the implied discount rate? Solve the problem using the following approaches: a. Use trial and error or Goal Seek in Excel (tab Data/What-if-Analysis). b. Use the excel built-in function RATE.
Specific Instructions: Solve each problem NEATLY and SYSTEMATICALLY. Show your COMPLETE solutions, INDICATE the given, and BOx your final answers. Express all your answers in 2 decimal places. 1. The value of perpetuity per year is Php 10 000 and the annuity is Php 5 000. What is the Rate of Interest?
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You have entered into an agreement for the purchase of land. The agreement specifies that you will take ownership of the land immediately. You have agreed to pay $50,000 today and another $50,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 5%, (b) 7 %, or (c) 9%. Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) a. b. C. Payment Amount $ 50,000 50,000 50,000 Interest Rate 7 5% 7% 9% Answer is complete but not entirely correct. Compounding Annually Annually Annually Period Due 3 years 3 years 3 years $ Total Cost of Land Today 93,121.25 X 90,816.30✔ 88,617.30
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