Find the amount at the end of two years and seven months if 6,000.00 is invested at 9% compounded quarterly using simple interest for anytime less than a year interest period. Draw the cash flow diagram.
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Find the amount at the end of two years and seven months if 6,000.00 is invested at 9% compounded quarterly using simple interest for anytime less than a year interest period. Draw the cash flow diagram.
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- Calculate the present value of the following stream of cash flows: cash flows of $7,000, quarterly for 7 years. Assume an interest rate (annual) of 12% (i.e. APR with quarterly compounding). Assume that the first cash flow occurs at t = 0. Show work for all parts requiring computation. Calculate the present value of the stream of cash flows. What is the EAR for the same APR of 12% (i.e. APR with quarterly compounding)?Consider the cash flow series shown below. Determine the required annual deposits (end of year) that will generate the cash flows from years 4 to 7. Assume the interest rate is 9%, compounded monthly.Draw the necessary cash flow diagrams. Prob#1: Determine the present worth of an annual payment of P 4500.00 : If made at the beginning of the year for 12 years at 8% compounded annually. If made at the end of each month for 5 years at 4% compounded monthly. If 15 payments start at the end of year 4 at 6% compounded annually.
- Assume the interest rate is 6% and quarterly compounding. 1. You are going to receive $12,000 in ten years. What is the present value? 2. You are going to receive $2,550 at the beginning of each quarter over the next ten years. What is the present value? Draw Time Line of cash flows, describe inputs for financial calculator, and calculate answerAttach a complete solution. Draw the cash flow diagram.Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded quarterly. How much would be accumulated in his fund by the end of the 4th year? The first payment occurs at time zero (now).What is the present value of end-of-year cash flows of $1,000 per year, with the first cashflow received three years from today and the last one 10 years from today? Use a discount rate of 12 percent .
- Determine the present worth of the following cash flows if the interest rate is 6% per year:What lump sum of money must be deposited into a bank account at the present time so that $500 per month can be withdrawn for five years, with the first withdrawal scheduled for six years from today? The interest is 9% compounded quarterly. Show complete solution with cash flow diagram.Consider the following three cash flow series: Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 15% per yearcompounded yearly.
- What deposit made at the beginning of each month will accumulate to P120,000 at 8% compounded semi-annually at the end of 10 years?Show complete solution, and the cash flow diagram.Find the total present worth of a series of cash flows with an annual interest rate of 2% per year. Round your answer to the nearest cent. Initial benefit of 6,628 at year O Benefit of 13,477 at year 3 Salvage value of 2,431 at year 4Consider each of the following deposit cash flow series. What will the final balance be (future equivalent value) after the final deposit? Assume the account earns 9% interest compounded annually *Use excel*