Homework Answers
Cash Flow year 3 =4000
Cash Flow year 6 =5000
PV =7328.63
Using Financial Calculator to calculate
CF0=-7328.63;CF1=0;CF2=0;CF3=4000;CF4=0;CF5=0;CF6=-5000;CPT IRR
=4.55%
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(1 point) Problem 7 - Unknown Time & Unknown Interest Rate At what effective annual rate...
(1 point) Problem 3 -Unknown and Varying Interest At an annual effective rate of interest i, the following 2 payment streams have equal present values. (i) $550 paid at the end of each year for 1...
(1 point) Problem 3 -Unknown and Varying Interest At an annual effective rate of interest i, the following 2 payment streams have equal present values. (i) $550 paid at the end of each year for 13 years. (i) A 13-year deferred perpetuity-immediate of $275 per year (i.e. first payment at time 14) Determine the effective annual rate of interest
(1 point) Problem 3 -Unknown and Varying Interest At an annual effective rate of interest i, the following 2 payment streams...
At what effective annual rate of interest i would the present value of $3000 a of 3 years plus $6000 at the end of...
At what effective annual rate of interest i would the present value of $3000 a of 3 years plus $6000 at the end of 6 years be equal to $7118.51. 3000
Please show the work/formulas. Problem 26.30 | 3.570 At an annual effective interest rate of i,...
Please show the work/formulas.
Problem 26.30 | 3.570 At an annual effective interest rate of i, the present value of a perpetuity- immediate starting with a payment of 200 in the first year and increasing by 50 each year thereafter is 46,530. Calculate i. Problem 27.1 1825.596 A 20 year increasing annuity due pays 100 at the start of year 1, 105 at the start of year 2, 110 at the start of year 3, etc. In other words, each...
7. The effective annual interest rate is 1 5%. What is the effective interest rate for...
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Problem 3 (Required, 20 marks) The money grows at the annual effective interest rate is i...
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At what effective rate of interest will the present value of $1,400 at the end of three years and $800 at the end of six years be equal to $1,500?
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Solve the cash flow equivalence below for the unknown value of Q assuming an 7% annual...
Solve the cash flow equivalence below for the unknown value of Q assuming an 7% annual interest rate. 1. 800 4i Q 70 o0 i23 2 2, You borrowed $6,000.00 for 5 years at 7% annual interest rate. The banker said that to repay the total loan amount you have to pay $1,463 at the end of each year. a) Draw a time line depicting this cash low b) Build a table to determine how much of the annual payment...
At an effective annual interest rate of , , the following two sets of payments have...
At an effective annual interest rate of
,
, the following two sets of payments have the same present
value:
(i) A payment of 64 immediately and another payment of 64 at the
end of 1 year
(ii) A payment of 125 at the end of 3 years and another payment
of 125 at the end of four years
Compute the effective rate of discount
equivalent to
We were unable to transcribe this imageWe were unable to transcribe this imageWe...
(1 point) Problem 3 -Unknown and Varying Interest At an annual effective rate of interest i, the following 2 payment streams have equal present values. (i) $550 paid at the end of each year for 13 years. (i) A 13-year deferred perpetuity-immediate of $275 per year (i.e. first payment at time 14) Determine the effective annual rate of interest
(1 point) Problem 3 -Unknown and Varying Interest At an annual effective rate of interest i, the following 2 payment streams...
At what effective annual rate of interest i would the present value of $3000 a of 3 years plus $6000 at the end of 6 years be equal to $7118.51. 3000
Please show the work/formulas.
Problem 26.30 | 3.570 At an annual effective interest rate of i, the present value of a perpetuity- immediate starting with a payment of 200 in the first year and increasing by 50 each year thereafter is 46,530. Calculate i. Problem 27.1 1825.596 A 20 year increasing annuity due pays 100 at the start of year 1, 105 at the start of year 2, 110 at the start of year 3, etc. In other words, each...
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Problem 3 (Required, 20 marks) The money grows at the annual effective interest rate is i (i > 0) and compound interest is assumed. It is given that • The present value (at time 0) of n-year annuity-due that pays 3X at the beginning of every year for n years is $1314. The first payment is made today. • The present value (at time 0) of 3n-year annuity-due that pays X at the beginning of every year for 3n years...
At what effective rate of interest will the present value of $1,400 at the end of three years and $800 at the end of six years be equal to $1,500?
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At an effective annual interest rate of
,
, the following two sets of payments have the same present
value:
(i) A payment of 64 immediately and another payment of 64 at the
end of 1 year
(ii) A payment of 125 at the end of 3 years and another payment
of 125 at the end of four years
Compute the effective rate of discount
equivalent to
We were unable to transcribe this imageWe were unable to transcribe this imageWe...
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