5-17 EFFECTIVE INTEREST RATE You borrow $85,000, the annual kan payments are $8.273.99for 30 years. What interest rate are you being changed?UNEVEN CASH FLOW STREAMFind the present values of the following cash fkrw streams at 8% compounded annually,5-18

Loan amount=$85000Annual payment=$8273.99Period=n=30yearsRequired to find out interest rate of loan.

Answered: 3-17 EFFECTIVE INTEREST RATE You borrow…

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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p. In how many years is required for 2,000.00 to increase by 3,000.00 if interest is 12% compounded semi-annually? include a non-excel cash flow
3 Using Exhibit 1-B, complete the following table. (Round FVA factors to 3 decimal places and final answers to the nearest whole dollar.) S S $ Annual Deposit $ 2,400 2,400 2,400 2,400 Rate of Return 3% 9% 5% 11% Answer is complete but not entirely correct. Number of Years 10 10 30 30 Investment Value at the End of Time Period S $ $ $ Total Amount of Investment 28,796 $24,000 54,149 X S 268,355 X $ 1,401,065 $ Total Amount of Earnings S S 24,000 72,000 $ 72,000 $ 4,796 X 30,149 X 196,355 x 1,329,065 x
An investment has the following expected cash flows: Year 2 3 Cash Flows $10,033 $20,003 30,000 The discount rate is 8 percent. The investment's future value at the end of year 3 is $ ___(keep two decimal places)
What is the simple annual rate of return on a $10,000, 3-year investment with cash inflows of $2,000 each year? A. 10% B. 20% C. 30% D. 40%
Calculate the Present Value of the cash flow shown below.Interest rates 11.00% per year, compounded annually Calculate the Present Value of the cash flow shown below Interest rates 11.00% per year, compounded annually +$45,500 13
Year 1 2345 Cash flow stream $24,000 $20,000 $16,000 $8,000 $4,000
Discount rate: 6% End of year: 1 2 4 Cash flows: (20,000) $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 What is the Net Present Value of the cash flows? At what discount rate is the Net Present Value "0"? Initial outlay: 5,000 Life of investment in years: 10 Amount to be received at end: 10,000 8 Rate of return: Amount of loan: 2$ 50,000 Annual payment: 2$ 10,000 Interest rate: 8% 9. How many years will it take to pay off the loan? 3. %24 %24 %24 %24
The appropriate discount rate for the following cash flows is 15 percent compounded quarterly. Year 1 2 3 4 Cash Flow $700 600 What is the present value of the cash flows? о 1,100 Multiple Choice O $1,628.22 $251.20 O $1,694.67
Help Dose an investment has cash inflows of R dollars at the end of each year for two years. The present value of these cash inflows using a 12% discount rate Choice sometimes greater than under a 10% discount rate and sometimes less; it depends on R. O greater than under a 10% discount rate. O less than under a 10% discount rate. O equal to that under a 10% discount rate. 节 2009
Please provide correct answer
None
25. Consider a cash flow and imterest profile as shown below: 2 3 year 1 CF at EOY (SR) -10,000 6,500 6,000 5,500 Interest rate (%) 10 The formula to be used for finding the equivalent annual worth for the above cash flow is: a. A(P/F 6%, 1)+A(F/P 8%, 1)(P/F 6%, 1)+A(F/P 10%, 1)(F/P 8%, 1)(P/F 6%, 1) b. A(A/P 6%, 1){1+(A/P 8%, 1)+(A/P 8%, 1)(A/P 10%, 1)} c. A(A/F 6%, 1)+A(A/P 8%, 1)(A/F 6%, 1)+A(A/P 10%, 1)(A/P 8%, 1)(A/F 6%, 1) d. A(P/F 6%, 1){1+(P/F 8%, 1)+(P/F 8%, 1)(P/F 10%, 1)}

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3-17 EFFECTIVE INTEREST RATE You borrow $85,000, the annual kan payments are $8.273.99 for 30 years What interest rate are you being changed? UNEVEN CASH FLOW STREAM 5-18 Find the present values of th lowing cash flow streams at 8% compounded annually