2. It is desired to have P200,000 two yearsfrom now by depositing an initial amount P,plus P50,00 on the 6th month and anotherP50,000 after 1 year. What would that initialamount be if interest rate is 12% pacompounded monthly?O P57,060.33O P 69,277.10O P 66,038.51O P61,990.42

Future value = P 200,000 Annual interest rate = 12% Monthly interest rate = 12%/12 = 1% Deposit…

Answered: 2. It is desired to have P200,000 two…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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13. You will receive 15 annual payments of $20,000. The first payment will be received 8 years from today and the interest rate is 6 percent. What is the value of the payments today?
Use the following 10% present value factors: N 1: 0.9091 N = 2: 0.8264 N= 3: 0.7513 Assume you wish to receive $1,000 at the end of two years. Assuming an interest rate of 10% what amount would you need to deposit todayin order to receive the S1, 000? Round to the nearest penny if necessary.
3. A series of equal cash $200 that is deposited at the end of each month will last for 10 years. How much will be the future worth of these money if the bank offers an interest rate of 9% compounded monthly? If compounded quaterly, how much is the future worth?
Two $200 payments at the ends of the third and fourth years would be worth how much today? if there is an 8% yearly interest rate?
If you deposit $5,000 4 years from today, how much will you be able to withdraw 10 years from today if interest is 8.5% per year compounded annually?
How much do you have to deposit today so that beginning 14 years from now you can withdraw 15,000 a year for the next 4 years (periods 14 through 17) plus an additional amount of 30,000 in that last year (period 17)? Assume an interest rate of 11 percent.
What's the future value of $15,000 after 5 years if the appropriate interest rate is 14.75%, compounded annually?
A).$4500 will be paid 6 years and 10 months now. Find present value of payment if interest is at rate j2 = 9%. Use the practical metho. B). An investment fund guarantees to double your money in five years. What rate of j2 is implied ? C). If money doubles at certain rate of interest compound monthly in six years. How long will it take to the same amount of money to triple in valuy ?
Suppose that you are about to borrow $10,000 from a bank. Suppose you will be repaying using end-of-year annual payments. What will be your annual uniform payment over 8 years with 10% nominal interest compounded monthly? What will be your annual uniform payment over 7 years with 10% nominal interest compounded continuously?
Suppose that you have the opportunity to receive $24,000 per year for the next 6 years. Over this time period, the APR is 7% per year. Interest is compounded on a monthly basis. How much are you willing to pay for this investment today? Round your answer to the nearest dollar. a. PVA = $113,739 b. PVA = $118,309 c. PVA = $117,309 d. PVA = $118,903
What is the future value of an ordinary annuity that promises $60,000 per year for 10 years if the appropriate interest rate is 4% in excel formula
Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9 percent. What is the future value if the payments are made on the last day of the year? What if the payments are made on the first day of the year? a) $82,756.68; $90,204.78 b) $90,204.78; $82,756.68 c) $49,345.10; $53,786.16 d) $53,786.16; $49,345.10

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2. It is desired to have P200,000 two years from now by depositing an initial amount P, plus P50,00 on the 6th month and another P50,000 after 1 year. What would that initial amount be if interest rate is 12% pa compounded monthly?