Calculate the future value at year 4 of the cash flows on the timeline below. The...

Question

Question

Calculate the future value at year 4 of the cash flows on the timeline below. The relevant rate is 6%. (Enter only numbers an

An investment will pay you $5000 in 5 years if you pay $3035 today. What is the impled rate of return? (Enter only numbers an

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Ans. Part-A		Future Value at beginning of 4th Year is $552.64

	Time	Formula	Amount
	Year 1	1001.061.06*1.06	119.10
	Year 2	1501.061.06	168.54
	Year 3	250*1.06	265.00
		Future Value at beginning of 4th Year	552.64


Ans. Part-B		Implied Rate of Return = 10.50

		Formula: ((5000/3035)^(1/5)-1)*100 = 10.50

Add a comment

Answer 2

Similar Homework Help Questions

Calculate the future value at year 4 of the cash flows on the timeline below. The...

Calculate the future value at year 4 of the cash flows on the timeline below. The relevant rate is 6%. (Enter only numbers and decimals in your response. Round to 2 decimal places.) the other oz. HII II An investment will pay you $5000 in 5 years if you pay $3035 today. What is the implied rate of return? (Enter only numbers and decimals in your response. Round to 2 decimal places.) TVM Practice - CH 1, 2, & Annuities...
Question 2 You have received an inheritance which will pay you $2,827 every month for 13...

Question 2 You have received an inheritance which will pay you $2,827 every month for 13 years. If the relevant rate is 7.99% per year. How much is it worth today? Enter only numbers and decimals in your response. Round to 2 decimal places. Use your financial calculator. Question 2 of 7 Moving to another question will save this response
6 Unanswered What is the value of the bond in the table below. Enter only numbers...

6 Unanswered What is the value of the bond in the table below. Enter only numbers and decimals in your response. Round to 2 decimal places. Type your response Time to Coupon Company Maturity Rate Payment Yield Frequency Alibaba 15 years 4.5000% 4.5420% | Semi-annual

An investment offers the following cash flows: $269 today, $468 one year from now, $481 in...

An investment offers the following cash flows: $269 today, $468 one year from now, $481 in 2 years, and $308 in 3 years. If the relevant interest rate is 6% per year (an APR, with interest compounded annually), what is the value of the investment 3 years from today (immediately after the cash flow at "year 3" occurs)? Do not round any intermediate work. Round your final answer to 2 decimal places (ex: if your answer is 12.345678 then you...
5.An investment will pay you $3,096 in 1 years if you pay $1,980 today. What is...

5.An investment will pay you $3,096 in 1 years if you pay $1,980 today. What is the implied rate of return? (Convert to a decimale. Round to 2 decimal places.) 6.In 1998, the average price of a gallon of gas was $1.09. Today, the average price of a gallon of gas is $2.84. At what annual rate has a gallon of gas increased over the last 20 years? (Answer as a percent. Enter only numbers and decimals in your response....
8.5 Unanswered 5 Consider u(x1, x2) = x9.5x9.,1 = 300,P1 = 4,p2 = 1. If Piincreases from $4 to $9, what is the e...

8.5 Unanswered 5 Consider u(x1, x2) = x9.5x9.,1 = 300,P1 = 4,p2 = 1. If Piincreases from $4 to $9, what is the equivalent variation? Enter a number only, round to two decimals. If money needs to be taken away from the consumer include a negative sign. Type your response 8.6 Unanswered Consideru(x1, x2) = 2x0.5 + x2,1 = 200,21 = 1,p2 = 4. If P2 increases from $4 to $8, what is the compensating variation? Enter a number only,...

lT-Mobile 6:00 AM 100% Question 6 ww. Unanswered What is the value of the bond in...

lT-Mobile 6:00 AM 100% Question 6 ww. Unanswered What is the value of the bond in the table below. Enter only numbers and decimals in your response. Round to 2 decimal places. Type your response Time to Coupon Company Maturity Rate Payment Frequency Alibaba 15 years 4.5000% 4.5420% | Semi-annual Yield 2 attempts left. Submit
Suppose that you are evaluating an investment opportunity with the following end of year cash flows....

Suppose that you are evaluating an investment opportunity with the following end of year cash flows. What is the IRR? Enter your answer as a percent, do not include the %. Round your final answer to two decimals. Timeline 0 1 2 3 Free-cash-flow 200 200 200 -2000
1.Suppose that 2 years ago you bought an old record player at a yard sale for...

1.Suppose that 2 years ago you bought an old record player at a yard sale for $1. You saw today on E-bay that the same record player is selling for $53. If you were to sell the record play at that price today, what would be the implied return percentage? (Convert to a percent. Round to 2 decimal places. 2.in 1998, the average price of a gallon of gas was $1.07. Today, the average price of a gallon of gas...

6.In 1998, the average price of a gallon of gas was $1.09. Today, the average price...

6.In 1998, the average price of a gallon of gas was $1.09. Today, the average price of a gallon of gas is $2.84. At what annual rate has a gallon of gas increased over the last 20 years? (Answer as a percent. Enter only numbers and decimals in your response. Round to 2 decimal places.) 7.Your goal is to have $76,023. If you can earn 11.9% per year and you invest $18,064 today, how many years until you reach your...

Calculate the future value at year 4 of the cash flows on the timeline below. The...

Homework Answers