Calculate the equivalent lump-sum(total) receipt now for the following cash flows: You invest $3,000 today, another $1, 500 one yearfrom now, and still another $5,000 three years from now. You then receive $10,000 six years from now and $15,000 two years afterthe receipt of $10,000. The nominal rate is 15% per year compounded continuously.Use the editor to format your answer

Equivalent lump sum receipt: It is the equivalent value of the lump sum received at a different…

Answered: Calculate the equivalent…

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

See similar textbooks

Similar questions

What nine-year annuity cash flow (i.e., annual cash flows for 9 years) will generate a 5.0% return on a $17,000 investment today? Round your answer to three (3) decimal places.
Find the present value of the following cash flow: receive $7 every year for 28years with the first payment being 9 years from now. Assume an effective annual rate of 5.1%
You currently have $50.6 in your savings account at an annual rate of 14 percent. How many years will it take for this investment to grow to a value of $382.4?
1.You expect to receive AED 400,000 a year for the next 10 years and this amount will grow at a rate of 6% . What is the present value of the expected cash flows for the next 10 years if the interest rate is 8% per year?
An investment pays $4,000 per year at the beginning of each year for the next 4 years and then $6,000 per year at the beginning of each year for the next 6 years. Using a discount rate of 8%, what is the GPV of these payments?
How much interest is payable each year on a loan of $2,000 if the interest rate is 10% per year when half of the loan principal will be repaid as a lump sum at the end of four years and the other hawk be repaid in one lump-sum amount at the end of eight years? How much interest will be paid over the eight-year period? Draw the Cash Flow Diagram.
What is the present value of end-of-year cashflows of $1,000 per year, with the first cashflow received three years from to day and the last one 10 years from today? Use a discount rate of 12 percent
An investment offers $1,000 per month forever. The first payment will occur three months from today. What is the present value of this investment if the annual percentage rate is 24 percent?
We expect a perpetuity of quarterly cash flows of $80,000 starting in 1 quarter. Given a discount rate of 5.75% per year compounded semi-annually, what is the present value of this perpetuity?
you recently paid $13,275 for an investment that promises to pay $625 at the end of each 6 years, then an additonal lump sum payment of $17,500 at the end of the 6th year. what is the expected rate of return on this investment?
An investment product promises semi-annual cashflows of $3,500 for the next 5 years. If the stated interest rate with monthly compounding is equal to 10%, what is the present value of the cashflows that the investment promises?
You expect to deposit the following cash flows at the end of years one (1) through to five (5), $1, 000, $4, 000, $9, 000, $5, 000 and $2, 000 respectively. What is the future value at the end of year six (6) if you can earn 10% compounded annually?

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS