Homework Answers
1) The formula for present value calculation :
present value = Cash Flow/(1+r)^n
where r is the rate and n is the time period
Total present value = 120/(1.04^1)+200/(1.04^2)
=300.29
Hence option c is correct
For question 13:
Option C is correct
Add Answer to:
QUESTION 6 An investment will pay you $120 in one year and $200 in two years....
A lender lends $10,300, which is to be repaid in annual payments of $2,040 for 6...
A lender lends $10,300, which is to be repaid in annual payments of $2,040 for 6 years. Which of the following shows the timeline of the loan from the lender's perspective? O A Year 1 0 Year 2 $2,040 Year 3 $2,040 Year 4 $2,040 Year 5 $2,040 Year 6 $2.040 B. Year 0 Year 1 - $10,300 $2,040 Year 2 Year 3 $4,040 $6,040 Year 4 $8,040 Year 5 Year 6 $10,040 $12,040 Year 0 Year 1 - $10,300...
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10) An investment will pay you S120 in one year and $200 in two years. If the interest rate is 7%, what is the present value of these cash flows? A) S294.69 B) $286.84 C) $299.07 D) $320.00 11. A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120.000 at the end of five years, or as equal annual payments at the end of each of the next five years. If...
10) An investment will pay you 51 20 in one year and $200 in two years....
10) An investment will pay you 51 20 in one year and $200 in two years. If the interest rate is 7%, what is the present value of these cash flows? A) $294.69 B) $286.84 C) $299.07 D) $320.00 10) 11). TU) A bank is negotiating a loan. The loan can either be paid off as a lump sum of $120,000 at the end of five years, or as equal annual payments at the end of each of the next...
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if an investment will pay you $120 in one year and $200 in two years. If...
if an investment will pay you $120 in one year and $200 in two years. If the interest rate is 4%, what is the present value of these cash flows?
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An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $ Future value: $
A lender lends $10,300, which is to be repaid in annual payments of $2,040 for 6 years. Which of the following shows the timeline of the loan from the lender's perspective? O A Year 1 0 Year 2 $2,040 Year 3 $2,040 Year 4 $2,040 Year 5 $2,040 Year 6 $2.040 B. Year 0 Year 1 - $10,300 $2,040 Year 2 Year 3 $4,040 $6,040 Year 4 $8,040 Year 5 Year 6 $10,040 $12,040 Year 0 Year 1 - $10,300...
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QUESTION Ап investment will pay you $120 in one year and $200 in two years. If the intere st rate is 4%, what is the present value of these cash flows? $300.29 $304.91 O $307.69 。5320.00 None of the above QUESTION 2 Which of the following investments has a higher present value, assuming the same (strictly positive) interest rate Year Investment X Investment Y 1 $5,000 $11,000 2 $7,000 $9,000 3 $9,000 $7,000 4 $11,000 $5,000 applies to both investments?...
An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 10 % annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $ Future value: $ You want to buy a car, and...
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