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Answer the following questions: 1) Consider the following cash flow: You will receive $500 at the end of years 3 and 4 and $1,000 at the end of year 5. If the interest rate is 7%, what amount received at the present is equivalent to this cash flow? 2) Given the cash flow in the figure below, and i=10% per year. Find V4 (or equivalent worth at n=4) $200 $150 $120 $100 $100 $80 Years 1 3 Base period 3) Given the cash flow in the figure below, and i=8% per year. Find V3, V4 and V5 (or equivalent worth at third, fourth and fifth year) Rs 500 Rs 400 Rs 300 Rs 200 Rs 80 Rs 80 Rs 40 Years 6. Base period 4) If you want to receive 100,000 $ after 5 years from your bank account, what is the amount that you have to deposit now, if the bank gives 10% interest accumulated annually? 5) A person deposits $5000 now in an account 14% compounded annually. He wants to withdraw the money when it becomes $ 20,000. How long time will he wait for?

Answer the following questions: 1) Consider the following cash flow: You will receive $500 at the end of years 3 and 4 and $1,000 at the end of year 5. If the interest rate is 7%, what amount received at the present is equivalent to this cash flow? 2) Given the cash flow in the figure below, and i=10% per year. Find V4 (or equivalent worth at n=4) $200 $150 $120 $100 $100 $80 Years 1 3 Base period 3) Given the cash flow in the figure below, and i=8% per year. Find V3, V4 and V5 (or equivalent worth at third, fourth and fifth year) Rs 500 Rs 400 Rs 300 Rs 200 Rs 80 Rs 80 Rs 40 Years 6. Base period 4) If you want to receive 100,000 $ after 5 years from your bank account, what is the amount that you have to deposit now, if the bank gives 10% interest accumulated annually? 5) A person deposits $5000 now in an account 14% compounded annually. He wants to withdraw the money when it becomes $ 20,000. How long time will he wait for?

Essentials Of Investments
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
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Answer the following questions: 1) Consider the following cash flow: You will receive $500 at the end of years 3 and 4 and $1,000 at the end of year 5. If the interest rate is 7%, what amount received at the present is equivalent to this cash flow? 2) Given the cash flow in the figure below, and i=10% per year. Find V4 (or equivalent worth at n=4) $200 $150 $120 $100 $100 $80 Years 6. 3. 5 Base period 3) Given the cash flow in the figure below, and i=8% per year. Find V3, V4 and V5 (or equivalent worth at third, fourth and fifth year) Rs 500 Rs 400 Rs 300 Rs 200 Rs 80 Rs 80 Rs 40 Years 1 Base period 4) If you want to receive 100,000 $ after 5 years from your bank account, what is the amount that you have to deposit now, if the bank gives 10% interest accumulated annually? 5) A person deposits $5000 now in an account at 14% compounded annually. He wants to withdraw the money when it becomes $ 20,000. How long time will he wait for?
Transcribed Image Text:Answer the following questions: 1) Consider the following cash flow: You will receive $500 at the end of years 3 and 4 and $1,000 at the end of year 5. If the interest rate is 7%, what amount received at the present is equivalent to this cash flow? 2) Given the cash flow in the figure below, and i=10% per year. Find V4 (or equivalent worth at n=4) $200 $150 $120 $100 $100 $80 Years 6. 3. 5 Base period 3) Given the cash flow in the figure below, and i=8% per year. Find V3, V4 and V5 (or equivalent worth at third, fourth and fifth year) Rs 500 Rs 400 Rs 300 Rs 200 Rs 80 Rs 80 Rs 40 Years 1 Base period 4) If you want to receive 100,000 $ after 5 years from your bank account, what is the amount that you have to deposit now, if the bank gives 10% interest accumulated annually? 5) A person deposits $5000 now in an account at 14% compounded annually. He wants to withdraw the money when it becomes $ 20,000. How long time will he wait for?
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