2. These cash flow transactions are said to be equivalent in terms of economic desirability at an interest rate of 6% compounded annually. Determine the unknown value A. 500 400 300 A A A A 200 A 100 -2-3- Cash Flow 1 Cash Flow 2

An investor is told that the following cash flow profile has a present value of $12,000 assuming that the money received at each time period is placed into an account where it earns 17% annually. For what value of X will this be true? Year Cash Flow 1 Click here to access the TVM Factor Table calculator. LA $ 7308 2 3 5 6 7 $1,600 $1,700 X X $2,600 $1,700 $600

You buy a $200,000 house using a 30-year mortgage. At the end of the 15th year you will need to replace the roof and pay $15,000. At the end of the 10th and 20th year, you will need to replace the hot water heater and pay $2,000 each time. If i-6%, what is the equivalent uniform annual cost of owning the house? nid w

11) You would like to have $8 500 for future spending in three years from now. How much should you deposit in your bank account now if the account pays you 0.4% interest per month? A) $2 071 -B) $7 362 C) $8 102 D) $8 399 E) $8 429 le forming facility over the next 5 years. Latin

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For the following cash flows, using Excel, compute: a) the present worth. b) the equivalent uniform annual worth c) draw a cash flow diagram (chart) of the annuities. 200 220 i 15% 242 266.20

- A couple has a $475,000 mortgage amortized over 30 years with monthly payments. They chose to lock in a rate of j2-4% for the first 5 years. a) Calculate their original mortgage payment (rounded up to the next cent). b) Calculate the balance remaining after five years. c) Calculate their new monthly payment (rounded up to the next cent) if they refinance at j2-5% after the first five years are up. d) How much interest did they pay during the first 5 years?

Using an interest table gradient series factor, write an equation to find the Present Worth (at EOY 0) of the following series of payments. Interest is 5%. ΕΟΥ NCF ($) -1,000 1 500 600 3 700 4 800 900

Mr. Jones borrowed P 200,000 in a bank and promise to pay at end of each year for 10 years, including the interest at 10% compounded annually. he failed to pay of the first 4 years. At the end of the 5th year, the bank demanded him to pay all liabilities. What amount will Mr. Jones pay at the end of the 5th year?

03.04-PR008 You deposit $10,000 in a fund that pays compound annual interest equal to 3%. One year later the interest rate changes to 4%, 2 years later the interest rate changes to 5%, and 3 years later the interest rate changes to 6%. How much will you have in the fund after 4 years if you withdrew $2,500 at the end of each of the previous 3 years?