Question

Need questions 9-12 through 9-14. Step by step please and thank you.

the Flow 9-12 Find the present values of the following cash flow streams under 9-1 conditions: Cash Stream B Cash Stream A $100 400 400 300 Year $300 400 400 100 4 a. Th b. The appropriate interest rate is 0 percent e appropriate interest rate is 8 percent. 9-13 Find the amount to which $500 will grow in five years under each of the following conditions: a. 12 percent compounded annually b. 12 percent compounded semiannually c. 12 percent compounded quarterly d. 12 percent compounded monthly Find the present value of $500 due in five years under each of the following ding 9-14 ting conditions: a. 12 percent simple rate, compounded annually b. 12 percent simple rate, compounded semiannually c. 12 percent simple rate, compounded quarterly d. 12 percent simple rate, compounded monthly

Answer 1

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Q 9-12	a) present value with 8% interest rate
		i	ii		iii		iv=iii*i	v=iii*ii
	Year	Cash flow A	Cash flow B		PVIF @ 8%		Present value A	Present value B
	1	100	300		0.9259		92.59	277.78
	2	400	400		0.8573		342.94	342.94
	3	400	400		0.7938		317.53	317.53
	4	300	100		0.7350		220.51	73.50
	Present value	1200	1200				973.57	1,011.75
			Present value
	Cash stream A		973.57
	Cash stream B		1,011.75
	a) present value with 0% interest rate
	With zero percent interest rate present value will be same as sum of cash flow
			Present value
	Cash stream A		1,200.00
	Cash stream B		1,200.00
Q 9-13	we have to use financial calculator to solve this problem
	Put in calculator for each of compounding scenarios.
			Annually	semiannually	Quarterly	Monthly
	PV		-500	-500	-500	-500
	I		12%	6%	3%	1%
	PMT		0	0	0	0
	N		5	10	20	60
	Compute FV		$881.17	$895.42	$903.06	$908.35
Q 9-14	we have to use financial calculator to solve this problem
	Put in calculator for each of compounding scenarios.
			Annually	semiannually	Quarterly	Monthly
	FV		500	500	500	500
	I		12%	6%	3%	1%
	PMT		0	0	0	0
	N		5	10	20	60
	Compute PV		($283.71)	($279.20)	($276.84)	($275.22)
	therefore present value =		$283.71	$279.20	$276.84	$275.22