You are expecting to receive a payment of $5969 in 2 years and $9869 in 6 years. If the interest rate is 14.61%, how much are these cash flows worth today?
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You are expecting to receive a payment of $5969 in 2 years and $9869 in 6 years. If the interest rate is 14.61%, how much are these cash flows worth today?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYou will receive a cash payment of $6.4 in 4 years. If the relevant interest rate is 16.4%, how much is it worth today? Answer:Assume that you are going to receive $468 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.69%?
- You will receive $100 one year from today and another $100 two years from today. The interest rate for the first year is 1%, but rates are expected to rise to 5% in the second year. What is the present value of the cash flows? Round your answer to two decimal places.An investment will pay you $100 in one year and $200 in two years. If the interest rate is 5%, what is the present value of these cash flows?Assume you recently have 6,000 in a bank. Asusume that you are going to receive 160 monthly until the day of your retirement 22 years from now. What is the present value of all these cash flows if the yearly interest rate is 6%.
- 1. Suppose you can save $200 per year at the end of each year for 15 years and earn 7.49% interest per year. However, you cannot start saving for five years. What is the present value of this annuity? 2. What are the annual payments for a 4-year $4,000 loan if the interest rate is 9% per year? Make up a loan amortization schedule. 3. Consider the following future value problem. The respective cash flows for t = 0, 1, 2, and 3 are $3,000, $2,000, $8,000, and $5,000 and the discount rate is ten percent. What is the future value at t = 4? 4. You are offered a signing bonus of $2,000,000 or a future payment of $2,500,000 at the end of three years from now. If you can earn 7% on invested funds, would you take the signing bonus or wait for the future payment?Suppose your bank account will be worth $4,200.00 in one year. The interest rate (discount rate) that the bank pays is 5%. What is the present value of your bank account today?What is the future value of this cash flow stream: $100 at the end of 1 year, $150due after 2 years, and $300 due after 3 years, if the appropriate interest rate is 15%?($604.75)
- Answer the following questions assuming an interest rate of 8%. a) Suppose you will receive a series of cash flows that last forever. The first cash flow is $500 and is received next year. The cash flows grow at a rate of 1%. b) What is the present value of the cash flows from a) if they instead start in 6 years time? c) What is the present value of the cash flows from a) if the cash flows only last until year 10?You will be receiving cash flows of: $2,000 today, $2,000 at the end of year 1, $3,000 at the end of year 3, and $6,000 at the end of year 5. What is the net present value of these cash flows at an interest rate of 4%?What is the value today of a money machine that will pay $1,507.00 per year for 10.00 years? Assume the first payment is made today and that there are 10.0 total payments. The interest rate is 7.00%.