You are given $200 each year starting next year and finishing in 15 years (t = 15). If the discount rate is 6% p.a., what is the present value of the future cashflows??
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A: Future Value = fv = $230,000Present Value = pv = $41,000Interest Rate = r = 4.5%
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityWhat is the present value of the following cash-flow stream if the interest rate is 12%? You receive 100 at the end of first year, 800 at the end of second year, and 460 at the end of third year. (12% is annual interest rate and given annual compounding) (Please round your answer to the nearest whole number)Assume that you are going to receive $468 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.69%?
- You are expecting to receive a payment of $5969 in 2 years and $9869 in 6 years. If the interest rate is 14.61%, how much are these cash flows worth today? Answer:What is the present value of a perpetuity stream of cash flows that pays P1,000 at the end of year one, and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 8%?What is the future value of this cash flow stream: $100 at the end of 1 year, $150due after 2 years, and $300 due after 3 years, if the appropriate interest rate is 15%?($604.75)
- Suppose that starting a year from now you will receive $720 a year at the end of every year. If the discount rate is 6% what is this stream of cash flows worth today?You make an investment into a money market account at time T=0. In year T=5, the value of the money market account will be $5,000. The money market account pays an annual interest of R=6%, and interest is compounded on a quarterly basis. What is the present value of this account?a) What’s the rate of return you would earn if you paid $1,500 for a perpetuity thatpays $105 per year? b) At a rate of 8%, what is the present value of the following cash flow stream?$0 atTime 0; $100 at the end of Year 1; $300 at the end of Year 2; $0 at the end of Year 3;and $500 at the end of Year 4?
- Suppose that starting one year from now you will receive $560 a year at the end of every year. If the discount rate is 9% what is this stream of cash flows worth today?How much is the present value of a perpetuity of P1,000 payable semi-annually if money is worth 5% quarterly? Please also show the Cash Flow Diagram if needed. Thank you very muchSOLVE AND DRAW THE CASHFLOW DIAGRAM. A. If money is worth 4% compounded monthly, what payment at the end of each quarter will replace payments of P500.00 monthly? B. What is the present worth of a P1,000.00 annuity over a 10 year period, if interest rate is 8%?