Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Solve for the unknown number of years in each of the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years S 300 1,991 32,905 32,600 Interest Rate 10 % 8 13 20 Future Value $ 1,155 3,750 387,620 199,724arrow_forwardFor each case, provide the missing information. Assume payments occur at the end of each period. (Use the present value and future value tables, the formula method, financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places X.XXXXX. Round all final answers to the nearest cent, $X.XX, and round the loan maturity date to the nearest whole year.) (Click the icon to view the cases.) Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Cases Amount borrowed Interest rate Number of periodic payments per year Maturity (in years) Periodic payment (1) (a) 4% 4 10 $ 10,354.90 (2) $ 675,000 $ 4% 2 10 (b) S CO (3) 456,000 6 % 1 (c) 81.685.59 (4) $ 750.000 12 % T (d) I Xarrow_forwardCompute the future value in year 8 of a $3,500 deposit in year 1, and another $3,000 deposit at the end of year 3 using a 10 percent interest rate. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Future valuearrow_forward
- For each of the following, compute the future value: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value $ 2,350 10,053 105,305 243,382 Years Carne p 7 20 14 30 10 333 E MA Interest Rate 23232 HOS: ploping 201 18 % 10 % 11 % 3% Future Valuearrow_forwardFor each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years 12 4 16 21 Interest Rate 4 % 9 12 11 Future Value $ 18,128 42,317 798,382 655,816arrow_forwardCompletely solve. BOX THE FINAL ANSWER. WRITE LEGIBLY OR TYPEWRITE THE SOLUTIONS. DON'T USE EXCEL! DON'T USE EXCEL! DON'T USE EXCEL! DON'T COPY FROM OTHERS. What is the correct answer? a. P10,000.00 b. P1,880.00arrow_forward
- Nonearrow_forwardAnswer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote. Financial Mathematics Please answer all parts of the question Suppose you will receive $50,000 in 10 years time.a) What is the discount factor assuming quarterly compounding at 7% interest rate?b) What is the present value?c) What happens to the present value if the payment was to occur in five years?d) What happens to the present value if the interest rate was 8% instead?arrow_forwardWhat 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 Bow Cash flow received at the end of year (a) (b) [(0) Answer is complete but not entirely correct. Rate 6% 10% 13% PV Factor 0.89000 $ 0.82645 $ 0.78315 S PV < Required 1 7,553 18,406 2,669.99 2,479.34 2,349 44 **arrow_forward
- Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. a. An initial $800 compounded for 1 year at 9%. $ b. An initial $800 compounded for 2 years at 9%. $ c. The present value of $800 due in 1 year at a discount rate of 9%. $ d. The present value of $800 due in 2 years at a discount rate of 9%. $arrow_forwardFuture Value of an Annuity Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent. $600 per year for 10 years at 14%. $ $300 per year for 5 years at 7%. $ $600 per year for 5 years at 0%. $ Now rework parts a, b, and c…arrow_forwardGive typing answer with explanation and conclusionarrow_forward
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