How much do you have to deposit now with a second deposit in the amount of $700 at the end of the first year) so that vou will be able to withdraw $150 at the end of the second year through the fourth year, and $400 at the end of the fifth and sixth year, if the bank pays you 4% annual interest on your balance Use factor method and draw a cash flow diagram
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- You plan to borrow $1,000 from a bank. In exchange for $1,000 today, you promise to pay $1,130 in one year What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective? What does the cash flow timeline look like from your perspective? (Select the best choice below) O A. Period 0 1 CHEQuestion: Use the following information to answer the next two questions: You deposited the following stream of cash flow at the end of the year: Year deposit rate of interest 1 5000 8% 4 4000 8.5% 6 7000 10% What will be the total amount in your account at the end of 6 years? 2. What is the present value of your deposit?4. How much should you deposit in an account so that you can withdraw $5300 every year for the next 18 years. Interest rate is 6%. Please do not use excel. Also, include cashflow diagram if possible.
- Need answers ASAP... If P100 is deposited in a savings account that pays 6% annual interest, what amount has accumulated by the end of the eighth year? How much of this is interest and how much is principal? Draw the cash flow diagram.Answer the following: Show the cash flow diagram and solutions. A bank give a certain interest rate compounded semiannually of Php. 7K will amount of amount of Php. 28K after 12 years . What is the amount at the end of 16 years?1. If you make yearly deposits of $1200 in a bank account, how much money will you have in your account after 20 years? interest rate is 6%. Please work out and do not use excel. Include cashflow diagram if possible.
- QI. KNOWLEDGE AND UNDERSTANDING DRAWING CASH FLOW DIAGRAM Draw the ww m mm cash flow diagram for the following : 1. Assume that you want to deposit an amount (BD120,000.00) into an account three years from now in order to be able to withdraw BD750 per year for ten years starting four years from now. Assume that the interest rate is 4.5% per year. Construct the cash flow diagram. 2. Suppose that you want to make a deposit into your account now such that you can withdraw an equal amount (A1) of BD300 per year for the first five years starting one year after your deposit and a different annual amount (A2) of BD600 per year for the following three years. With an interest rate (i) of 5.5% per year, construct the cash flow diagram. 3. If you deposit BD1,500 now, BD3,600 three years, BD2000 seven years, and BD1,800 nine years from now in a savings account that pays 10% interest, how much would you have at the end of year 25? Construct the cash flow diagram.What is the present value of a savings account that is expected to pay $1,250 of cash inflow at the end of year 1, $0 cash inflow at the end of year 2 and $1,050 cash inflow at the end of 3rd year given the rate of return 10% in the first and second year and 12% in the third year? Please Show the workWhat lump sum would have to be deposited today into an account bearing interest of 10% per year to provide withdrawals of $1000 at 8,9,10,11 years from today? (provide cash flow diagram with solution) please provide the cash flow diagram and explain your answer.
- A bank gives a loan to a company to purchase equipment which is worth of Tk.1250000 at an interest rate of 11.5% compounded annually. This amount should be repaid in 12 yearly equal installments. Find the installment amount that the company has to pay the bank. Also Draw the cash flow diagramYou open an account where you deposit $500 today. Further, you deposit $800 at the beginning of next year, withdraw $250 at the beginning of year two and deposit $450 at the beginning of year 3. The return for year 1 is 6%, for year 2 it is -8%, for year 3 it is 4.5% and for year 4 it is -2%. What is your dollar-weighted or money-weighted return (in percent) for the four-year period? Answer to two decimals. O -1.45 -6.95 -11.92How much must be deposited today into an account earning 3% interest annually to support annual withdrawal of $1550 a year in perpetuity? b) What if the first withdrawal starts at the end of year 5? Use factor method or interest formulas and draw cash flow diagram