Cash-flow A consists of a lump sum of $1,000 today. What is the future value (FV)...
Cash-flow A consists of a lump sum of $1,000 today. What is the future value (FV) of cash-flow A in year 6 if the interest rate is 5% compounded annually?
Homework Answers
FV = PV*(1+r)^n
Where FV= future value
PV= present value
r= rate of interest
n= number of periods
Hence FV = 1000*(1+0.05)^6
=1340.10
Add Answer to:
Cash-flow A consists of a lump sum of $1,000 today. What is the
future value (FV)...
What lump sum cash-flow in year 5 is equal to $1,000 today if the interest rate...
What lump sum cash-flow in year 5 is equal to $1,000 today if the interest rate is 3% compounded annually?
Cash-flow A consists of a lump sum of $5,000 arriving in year 4. If the interest...
Cash-flow A consists of a lump sum of $5,000 arriving in year 4. If the interest rate is 6%, compounded annually, what is the "present value" of cash-flow A?
What lump sum cash-flow in year 7 is equivalent in value to $500 in year 2...
What lump sum cash-flow in year 7 is equivalent in value to $500 in year 2 if the interest rate is 4% compounded annually?
What lump sum cash-flow in year 7 is equivalent in value to $500 in year 2...
What lump sum cash-flow in year 7 is equivalent in value to $500 in year 2 if the interest rate is 4% compounded annually? A. $601.22 B. $621.98 C. $657.97 D. $608.33
Calculate the future value of the single cash flow deposited today that will be available at...
Calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually, at the rate specified over the given period. Single Cash Flow ($) Interest Rate (%) Years Future Value ($) 939,000 5 6 243,000 16 18 154,000 12 13 592,000 8 27 What is the Future value of each one?
The future value of a lump sum at the end of five years is $1,000. The...
The future value of a lump sum at the end of five years is $1,000. The nominal interest is 10 percent and interest is compounded semiannually. Which of the following statements is most correct?
Find the lump sum deposited today that will yield the same total amount as payments of...
Find the lump sum deposited today that will yield the same total amount as payments of $9,000 at the end of each year for 5 years, at an interest rate of 5% compounded annually. The lump sum is su (Round to the nearest cent.)
Solve for the Present Value of a Lump Sum with the Following Situation: Investor has been...
Solve for the Present Value of a Lump Sum with the Following
Situation: Investor has been offered an investment opportunity that
is expected to provide $1,300 cash inflow at the end of five years.
Investor is able to make 5% compounded annually on other
investments. (This 5% discount rate can be thought of as an
opportunity cost of capitalthe return the investor is forgoing on
an alternative investment of equal risk). How much can the investor
pay today for this...
Find the Future Value (FV) of the following set of unequal cash flows: Year 1: 1,000;...
Find the Future Value (FV) of the following set of unequal cash flows: Year 1: 1,000; Year 2: 1,500; Year 3: 0; Year 4: 2,500; Year 5: 3,000. Assume a 6% interest rate. Try to solve the problem using both algebra and the cash flow worksheet on the calculator. Select one: O a. $7,017.54 O b. $8,721.08 O c. $10,576.68 O d. $9,210.60 e. $8,322.01
hello. i need some help in this. Name: Calculation of Present Value of a Lump Sum...
hello. i need some help in this.
Name: Calculation of Present Value of a Lump Sum You have been offered a security investment such as a bond that will pay you Php 10,000 at the end of 6 years in exchange for a fixed payment today, the appropriate annual interest rate on the investment is 12% compounded annually, what is the present value of the investment? Calculation of Future Value of a Lump Sum You plan to invest Php 10,000...
The future value of a lump sum at the end of five years is $1,000. The nominal interest is 10 percent and interest is compounded semiannually. Which of the following statements is most correct?
Find the lump sum deposited today that will yield the same total amount as payments of $9,000 at the end of each year for 5 years, at an interest rate of 5% compounded annually. The lump sum is su (Round to the nearest cent.)
Solve for the Present Value of a Lump Sum with the Following
Situation: Investor has been offered an investment opportunity that
is expected to provide $1,300 cash inflow at the end of five years.
Investor is able to make 5% compounded annually on other
investments. (This 5% discount rate can be thought of as an
opportunity cost of capitalthe return the investor is forgoing on
an alternative investment of equal risk). How much can the investor
pay today for this...
Find the Future Value (FV) of the following set of unequal cash flows: Year 1: 1,000; Year 2: 1,500; Year 3: 0; Year 4: 2,500; Year 5: 3,000. Assume a 6% interest rate. Try to solve the problem using both algebra and the cash flow worksheet on the calculator. Select one: O a. $7,017.54 O b. $8,721.08 O c. $10,576.68 O d. $9,210.60 e. $8,322.01
hello. i need some help in this.
Name: Calculation of Present Value of a Lump Sum You have been offered a security investment such as a bond that will pay you Php 10,000 at the end of 6 years in exchange for a fixed payment today, the appropriate annual interest rate on the investment is 12% compounded annually, what is the present value of the investment? Calculation of Future Value of a Lump Sum You plan to invest Php 10,000...
Most questions answered within 3 hours.
-
Mary's employer has a defined benefits retirement plan, which
pay 3.2% of her last year's salary...
asked 1 minute ago -
What are the characteristics and behavior of an ethical
manager?
Explain, in your words, what ethics...
asked 18 minutes ago -
1. Which of the following is NOT an argument that McMahan uses
to show that jus...
asked 39 minutes ago -
A crate slides up a frictionless slope. At the end of 3 seconds
its velocity is...
asked 56 minutes ago -
Use the following information to answer the next seven
questions.
Suppose there are three potential states...
asked 52 minutes ago -
If we only have interstitial and substitutional diffusion, then
what do we consider the process of...
asked 1 hour ago -
You look at yourself in a shiny 9.6-cm-diameter Christmas tree
ball.
If your face is 21.0...
asked 1 hour ago -
If we were to measure the relaxation time of a muscle after
undergoing tetanus compared to...
asked 1 hour ago -
4CO(g) + 8H2(g) -----> 3CH4(g) +
CO2(g) + 2H2O(l)
Use the following data as needed to...
asked 1 hour ago -
without using map
1. Write a C++ program to find out the top 10 words in...
asked 1 hour ago -
1)Calculate the percent ionization of a
0.330 M solution of hypochlorous
acid.
% Ionization = %...
asked 1 hour ago -
1a) How many grams of K2SO4 are in 250mL
of 0.11 M K2SO4 solution?
_____ g...
asked 1 hour ago