Homework Answers
As the 5 payments are made in 15 years , we assume that the payments are done after every 3 years.
So, the present value at 4.9% rate of interest =
= 4000 + 2000/1.0493 + 2000/1.0496 + 2000/1.0499 + 2000/1.04912 + 2000/1.04915
= 4000 + 1732.62 + 1500.99 + 1300.32 + 1126.48 + 975.88
= $10636.29
So the present value of all the depositions is $10636.29.
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3. (a) Consider ears for the depos ligure. a payment series of 1-4.9 percent and N-15 itions (in S PAYMENTS) as shown in the Determine the PRESENT WORTH of the scheme. 4000 nes 7. 417 3. 15.432 1513 (153
4) PW = -$1000 + 3000(P/F,10%,3) Single payment present (P/F, i,N)worth factor Single payment present (P/F, i,N)wo...
4) PW = -$1000 + 3000(P/F,10%,3)
Single payment present (P/F, i,N)worth factor
Single payment present (P/F, i,N)worth factor
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Part Two Chapters 4.9 00 is to be read in equa l payments over 15 years. The interest rate is 7 percent, compounded annually What is the amount of wherest that is included in the loan payment for har Ο Ο Ο Ο Ο newconnectmheducation.com/flow/connecthtreturnUrlhttp%3A2 2Fconnect. meducation.com%2Fpaamweb2Findexhtml%223%2Fregistration2signup%2Fn-walker-library.com EXAM - Part Two Chapters 4.9 Help Save & Exit Submit A loan in the amount of $212.000 is to be repaid in equal annual payments over 15 years. The interest rate is...
A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years...
A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years if no inflation were present. However, an average inflation rate of 6 percent is expected to increase the payments accordingly. If the annual market rate of interest remains at 13 percent, determine the present equivalent worth of the investment
a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $270,000 for 15 years?...
a. What is the amount of the annuity purchase
required if you wish to receive a fixed payment of $270,000 for 15
years? Assume that the annuity will earn 10 percent per year.
b. Calculate the annual cash flows (annuity
payments) from a fixed-payment annuity if the present value of the
15-year annuity is $1.7 million and the annuity earns a guaranteed
annual return of 10 percent. The payments are to begin at the end
of the current year.
c....
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2. For the cash flows shown below, determine the total equivalent present worth & the equivalent annual worth in years 1 through 5. The interest rates specified are 10% for the years 1-3 and 12% for years 4 & 5. Draw the cash flow diagram as well. (Hint: Please note the different interest rates specified for different years] (4 + 2 + 2 pts) Year 0 1 2 3 4 5 Cash Flows, S 0 2000 2000 2000 4000 4000
Suppose you are to receive the following series of payments,over time. Time (years) Payment made 150...
Suppose you are to receive the following series of payments,over time. Time (years) Payment made 150 375 220 145 900 627 812 11.5 13.7 20 In addition, you have the following information about interest rates: From time 0 to time 5, i(4)-5.5% (nominal rate of interest, per annum) . From time 5 to time 11, d-: 7.25% (per annum) . From time l 1 to time 20, i 3% (per annum) .From time 20 onwards, (t -20) 10t o(t- years,...
Consider the accompanying cash flow diagram. Compute the equivalent annual worth at i= 10 % 6....
Consider the accompanying cash flow diagram. Compute the equivalent annual worth at i= 10 % 6. $5,000 $6,000 $4,000 $3,000 2 4 56 Years $3,000 Click the icon to view the interest factors for discrete compounding when i 10% per year The equivalent annual worth is $ (Round to the nearest dollar.) 8: More Info Equal Payment Series Single Payment Gradient Series Gradient Present Compound Present Compound Amount Sinking Present Capital Recovery Gradient Worth Fund Worth Uniform Amount Factor Factor...
PROBLEM A $10,000 investment would return a series of $3,000 year-end payments over the next 5...
PROBLEM A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years if no inflation were present. However, an average inflation rate of 6 percent is expected to increase the payments accordingly. If the annual market rate of interest remains at 13 percent, determine the present equivalent worth of the investment
A company must repay the bank a single payment of $21,000 cash in 3 years for...
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4) PW = -$1000 + 3000(P/F,10%,3)
Single payment present (P/F, i,N)worth factor
Single payment present (P/F, i,N)worth factor
Part Two Chapters 4.9 00 is to be read in equa l payments over 15 years. The interest rate is 7 percent, compounded annually What is the amount of wherest that is included in the loan payment for har Ο Ο Ο Ο Ο newconnectmheducation.com/flow/connecthtreturnUrlhttp%3A2 2Fconnect. meducation.com%2Fpaamweb2Findexhtml%223%2Fregistration2signup%2Fn-walker-library.com EXAM - Part Two Chapters 4.9 Help Save & Exit Submit A loan in the amount of $212.000 is to be repaid in equal annual payments over 15 years. The interest rate is...
A $10,000 investment would return a series of $3,000 year-end payments over the next 5 years if no inflation were present. However, an average inflation rate of 6 percent is expected to increase the payments accordingly. If the annual market rate of interest remains at 13 percent, determine the present equivalent worth of the investment
a. What is the amount of the annuity purchase
required if you wish to receive a fixed payment of $270,000 for 15
years? Assume that the annuity will earn 10 percent per year.
b. Calculate the annual cash flows (annuity
payments) from a fixed-payment annuity if the present value of the
15-year annuity is $1.7 million and the annuity earns a guaranteed
annual return of 10 percent. The payments are to begin at the end
of the current year.
c....
2. For the cash flows shown below, determine the total equivalent present worth & the equivalent annual worth in years 1 through 5. The interest rates specified are 10% for the years 1-3 and 12% for years 4 & 5. Draw the cash flow diagram as well. (Hint: Please note the different interest rates specified for different years] (4 + 2 + 2 pts) Year 0 1 2 3 4 5 Cash Flows, S 0 2000 2000 2000 4000 4000
Suppose you are to receive the following series of payments,over time. Time (years) Payment made 150 375 220 145 900 627 812 11.5 13.7 20 In addition, you have the following information about interest rates: From time 0 to time 5, i(4)-5.5% (nominal rate of interest, per annum) . From time 5 to time 11, d-: 7.25% (per annum) . From time l 1 to time 20, i 3% (per annum) .From time 20 onwards, (t -20) 10t o(t- years,...
Consider the accompanying cash flow diagram. Compute the equivalent annual worth at i= 10 % 6. $5,000 $6,000 $4,000 $3,000 2 4 56 Years $3,000 Click the icon to view the interest factors for discrete compounding when i 10% per year The equivalent annual worth is $ (Round to the nearest dollar.) 8: More Info Equal Payment Series Single Payment Gradient Series Gradient Present Compound Present Compound Amount Sinking Present Capital Recovery Gradient Worth Fund Worth Uniform Amount Factor Factor...
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