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- 4. ( Fund A earns interest at a simple rate of i% a year. $P is invested in fund A. (a) What is the accumulated value in fund A at time t years. (b) Calculate the effective rate of interest in year 1, year 2 and year 3. Solution:For some interest i and some number a pinterest periods n, the uniform series capital recovery factor is 0.0854 and the sinking fund factor is 0.0404. Find the interest rate.Consider end-of-year cash flows for $8000, $15000, $22000, $29000, and $36000 for years 1 to 5. If the series of cash flows is to be split into a uniform [ Select ] series and a uniform gradient, what is the uniform annuity amount A? If the series of cash flows is to be split into a uniform [ Select ] series and a uniform gradient, what is the uniform gradient amount G? What is the uniform annual equivalent if the interest [ Select ] rate is 12% per year? What is the future equivalent if the interest rate is 12% [ Select ] per year? What is the present equivalent if the interest rate is 12% per year? [ Select ] > >
- What is the equivalent uniform series value (A) for the following cash flow? Pick the closest answer. The interest rate is 5%.For some interest rate i and some number of interest periods n, the uniform series capital recovery factor is 0.1468 and the sinking fund factor is 0.0268. What is the interest rate? What is n?To find the present value (PV) of an ordinary annuity, a. the interest is compounded and then subtracted from the FV. O b. each payment is divided by (1+1)* c. each payment is multiplied by (1+1). O d. the future value (FV) is divided by the interest rate. e. the future value is divided by (1+1)*:
- What is the equivalent average annual effective rate of interest over 5-year period if the fund earns d^{(4)} = 4% for the initial 1 year, d^{(12)} = 6% for the next 2 years, and i^{(6)} = 9% in the last 2 years?Estimate the annual percent rate for the add on loan Using the given number of payments and annual interest-rate. Use the formula APR = 2nr/n+1 N= 48; R= 8% APR=???Example 26a (Varying Force of Interest) A fund earns interest at a force of interest 8, = kt . A deposit of RM100 at time t=0 will grow to RM250 at the end of 5 years. Determine k.
- Present using the rate of return method (ROR) with the formula. If the NPV is used to determine the ROR, please explain why? Rate of interest = 10%For the following stream of free cash flows, calculate the NPV if the discount rate is 11.9%. Year Free Cash Flows 0 -41,375 1 13,995 2 17,857 3 20,378 4 10,452 5 21,455What is the annual percentage yield on a fund which earns 4.6% compounded weekly?
